JAYABARATH FABRIC MILLS LTD Vs. UNITEX EXPORTS

JUDGEMENT

(1.) This appeal is directed against the judgment and decree passed in a suit for recovery of money in O.S.No.8355 of 1996 dated 17.6.1987 on the file of the II Additional City Civil Judge at Chennai.

(2.) The appellant before us is the defendant in the suit and the respondent herein has instituted the suit for recovery of a sum of Rs.9,76,609/- with interest at 18 per cent per annum from date of plaint till the date of payment and also for costs. For the sake of convenience, the parties are hereinafter referred to as arrayed in the plaint. The suit was originally instituted on the file of this court as C.S.No.261 of 1992 and it was later transferred to the City Civil Court, Chennai under the provisions of the Tamil Nadu Civil Courts and the Madras City Civil Court (Amendment) Act, 1995 (Act 28 of 1995) and the suit was re-numbered as O.S.No.8355 of 1996 on the file of City Civil Court, Chennai.

(3.) The case of the plaintiff as seen from the plaint is that the plaintiff is an exporter of fabrics and based on the orders placed by the foreign buyers, the plaintiff used to send the fabrics to the defendant for printing the fabrics. According to the plaintiff, during the course of the said business transaction, the plaintiff sent Grey fabrics (Rayon) on 21.2.1990, 2.3.1990 and 29.3.1990 and Gray Fabric (Cotton) on 13.3.1990 to the defendant and the consignment was acknowledged by the defendant. The plaintiff has stated that the defendant did the fabric printing and sent the same to the plaintiff at Chennai and on taking delivery, the goods were inspected by the plaintiff and it was found that the printing done by the defendant was of inferior quality. The plaintiff has stated that the goods were rejected by the foreign buyers and with intent to mitigate the damage, the plaintiff has disposed of the poor quality printed stock for a sum of Rs.6,54,456/- and suffered a total loss of Rs.16,31,165/- being the cost of the materials, transport charges incurred ,packing charges, the extra cost incurred for obtaining soft finish and the claim made by the foreign buyer. The plaintiff has stated that the defendant is liable to pay the plaintiff the balance amount of Rs.9,76,609/- after deducting the sum of Rs.6,54,456/- realised on sale of the fabric. The plaintiff has also stated that there has been several demands made by the plaintiff to settle the claim, but the defendant has not settled the claim and hence the suit was filed for the recovery of a sum of Rs.9,76,609/- with interest and costs.