LARSEN AND TUBRO LIMITED Vs. COMMERCIAL ELECTRIC WORKS

JUDGEMENT

(1.) The plaintiff has filed the suit against the three defendants. Originally it was filed against two defendants but later on it transpired that the first defendant M/s. Commercial Electric Work was a partnership concern and third defendant was one of the partners was impleaded as the third defendant.

(2.) The suit is for the recovery of Rs. 1,18,492.66 with future interest @ 18% per annum. The defendants are carrying on their business for die purchase and sale of various electrical goods. The defendants were acting as Stockists of the switchgears etc. of the plaintiff from 1962. There was a break in relationship and the same was resumed with effect from 1.4.70. The plaintiff used to supply goods on credit and the payment made through cheques by the defendants is to be credited to the accounts of the defendants. The account, was mutual open and current. The cheques issued by the defendants were invariably dishonoured and the amounts were debited in the account of the defendants.

(3.) The plaintiff stopped supply on and after 20.7.76. On 3.11.76 and 25.11.76 the plaintiff raised two debit notes towards interest and debited the said amount to the account of the first defendant firm. By a letter dated 6.2.78, the plaintiff requested the defendant to settle the account between the period from 20.7.76 and 31.3.78, the payments received from the defendants on account were adjusted in seriatum with reference to the purchases made by the defendants. As on 1.4.78 a sum of Rs. 1,90,054.56 was due. The defendants in their Balance Sheet for the year ending 31.3.78 admitted the plaintiff's dues at Rs. 1,74,091,03. This acknowledgement further extended the period limitation by three years. By a letter dated 16/22 June, 1978 the defendants acknowledged the receipt of the statement of account sent by the plaintiff. The defendants in the letter dated 6.2.78 admitted the dues to the extent of Rs. 1,17,768.33 as against the actual amount due Rs. 1,90,054.56 which included two debit notes towards the interest for Rs. 22,365.76 and Rs. 3,367.53.