KEMIN INDUSTRIES SOUTH ASIA PRIVATE LIMITED CHENNAI Vs. PIONEER FEEDS AND POULTRY PRODUCTS PRIVATE LIMITED,

JUDGEMENT

(1.) The plaintiff is a Company incorporated under the Companies Act 1956. The first defendant is a Private Limited Company and the second defendant is the Managing Director of the first defendant.

(2.) The plaintiff specialises in technology based solutions in the area of agri-foods, dietary supplements, pet food, etc. The plaintiff transacts business with its customers by way of direct supply of its products from its factory at Gummidipundi or through duly appointed C and F agencies at various places in India or through distributors. The defendants are the plaintiff's customers.

(3.) The second defendant had approached the plaintiff seeking to purchase its product for and on behalf of the first defendant. The defendant issued purchase orders and the plaintiff used to sell their products to the defendants. There was a regular request for supply by the defendants and consequent regular sales by the plaintiff. The plaintiff used to raise invoices for the value of the products supplied with a credit period of 90 days to pay the amounts due. It is stated in the plaint that the defendants used to make payments by cheques/demand drafts to the plaintiff's bank account with HDFC Bank, Anna Salai, Chennai. If the payments were not made within the credit period stipulated, interest was to be charged at 18% p.a. There were two running accounts maintained by the plaintiff in the name of the defendants under Payer Code No. A0910593 and No. A0910594 in the computerised accounts of the plaintiff. It was stated that there was a huge outstanding amount payable by the defendant as on June 2008. The plaintiff issued a legal notice on 13.06.2008 calling upon the defendants to pay a sum of Rs.1,37,53,998/- together with interest at 18% p.a. A further legal notice was issued on 27.06.2008 calling upon the defendants to pay an aggregate amount of Rs.1,44,78,998/- together with interest at 18% p.a. It had been stated that the last of the transactions between the plaintiff and the defendants was on 19.07.2008. Since the defendants had failed to pay the amounts, the suit had been instituted seeking a Judgment and Decree against the defendants for a sum of Rs.2,33,67,532.65 together with future interest at 18% from the date of the suit till the recovery of the amount and also for costs of the suit.