(1.) Plaintiff No.2 is a public limited company duly registered and incorporated under the Companies Act, 1956. Plaintiff No.1 is stated to be a unit of plaintiff No.2. The plaintiffs are engaged in the manufacture and sale of empty glass bottles and such bottles are utilised for bottling of soft drinks.
(2.) It is stated in the plaint that defendant No.1 is one of the franchisees of defendant No.2 and defendants are manufacturing, bottling and sale of various soft drinks. Empty bottles were purchased by the defendants in terms of the agreement between the parties. The order was placed on defendant No.1 but it is stated that the liability is of both the defendants.
(3.) The plaintiffs claim that they opened and maintained a running account in the name of defendant No.1 in respect of supplies made to defendant No.1. It is stated that there were certain cheques obtained from defendant No.1 which used to be kept by the plaintiffs and defendant No.1 called upon the plaintiffs vide its letter dated 12.2.1997 for replacement of the cheques in view of the change in the bank account. The liability is stated to be admitted by defendant No.2 in terms of letter dated 7.5.1997 and in terms of letter dated 3.12.1997 admitted that a sum of Rs.15.00 lakh and Rs.5.00 lakh were to be adjusted in respect of payments due from defendant No.1.