SEAGULL EXPORTS Vs. GIRISHA FASHIONS INC

JUDGEMENT

(1.) Plaintiff no.1 is a partnership firm of which plaintiff nos 2 and 3 are partners. The plaintiffs are engaged in the business of export of ready made garments. It is the case of the plaintiffs that defendant nos 2 to 4 approached the plaintiffs showing interest in purchase of ladies garments for purposes of export. The plaint states that defendant nos 2 to 4 represented that all the firms including defendant nos 1,5 and 6 are controlled and run by them being sister concerns of the family. It is alleged that defendant nos 2 to 4 agreed to stand as guarantors but the arrangement is stated to be oral. The orders are stated to have been placed from time to time by different firms.

(2.) The subject matter of dispute relates to a consignment of goods for which orders were placed by defendant no.1 vide Invoice No.15 dated 30.01.1996 valued at USD 50,832. The goods are stated to have been shipped to defendant no.1 at New York and are stated to have been received at the destination. The documents were negotiated through the bankers of the plaintiffs and the bankers of defendant no.1. Defendant no.1 apparently got the goods released on an assurance that the payment against the bill of exchange would be made on the due date on 12.05.1996. This commitment was not honoured.

(3.) Defendant no.1 remitted only an amount of USD 10,000 on 26.07.1996 against the invoice leaving the balance of USD 40,832. The plaintiff has filed a claim for this amount along with past, pendente lite and future interest at the rate of 24 per cent per annum. The exchange rate at which dollar was converted for purposes of institution of the suit is INR 42.50 and thus the principal amount of claim is Rs 17,36,210/-.