WINSOME BREWERIES LTD Vs. CITY DISTRIBUTORS

JUDGEMENT

(1.) THIS is a suit for recovery of money in the sum of Rs. 20,26,369.40 from the Defendant together pendente lite and future interest @ 24% per annum on the decretal amount from the date of institution till realization.

(2.) ACCORDING to the Plaintiff it is a leading manufacturer of several brands of beer like Henninger, German Thunder, Winsberg, Torando and Limo etc. It is stated that the Defendant is the distributor/agent of the Plaintiff having its office at Andheri (East), Mumbai. It is stated that pursuant to discussions and negotiations, the Defendant wrote a letter dated 30th August 1996 to the Plaintiff at New Delhi enclosing an application form for the grant of registration from the commissioner of state excise and requesting the plaintiff to bring the completed form to Mumbai. According to the Plaintiff pursuant to the above letter the Defendant was in September 1996 appointed as distributor of the Plaintiff.

(3.) IT is not in dispute that the Defendant placed on the Plaintiff four orders for beer on 17th, 18th March, 11th and 15th April 1997 aggregating to twenty- two permits involving a total of 15,400 cases @ 700 cases per truck to a permit. What is in dispute however is that according to the Defendant some of the consignments supplied by the Plaintiff were found to be of sub-standard quality. The grievance of the Defendant also was that the supply of beer by the Plaintiff was erratic leading to the permits having to be renewed. The grievance of the Plaintiff on the other hand is that despite raising bills on the Defendant for the supply of beer as ordered by it, the Defendant did not make the full payment. As against the total outstanding of Rs. 22,46,956/- the Defendant paid the Plaintiff only Rs. 9,57,170/-.