GINI TEX PRIVATE LIMITED Vs. SOHAM FASHION

JUDGEMENT

(1.) The plaintiff has filed the suit in the Commercial Division under the provisions of Order XXXVII of the Code of Civil Procedure 1908 ('CPC') seeking a summary judgment against the defendants in the sum of Rs.45,18,600.00 and further interest at the rate of 24% per annum from 31/3/2019 till the actual realization of the entire claim. The particulars of claim is set out at Exhibit I. The claim is based on the goods sold and delivered and cheques issued against the same.

(2.) Ms. Puthran the learned counsel for the plaintiff submitted that the plaintiff is a manufacturer / supplier of cotton and linen fabrics and the defendants are suppliers of fabrics and therefore, needed regular supply of fabrics. The defendants regularly placed purchased goods from the plaintiffs. They got from the plaintiffs credit period of 35 days from the date of supply of goods. It was agreed that delay in payment would result on interest being charged @ 18% from the 36th day up to 75 days and thereafter @ 24% on delay beyond 75 days. It was also understood between the parties that after supply, its acceptance and upon raising of invoice, the defendants would clear the invoice amount within 35 days.

(3.) It is submitted that between 26/11/2015 and 7/2/2016, a total 24 invoices were raised by the plaintiffs on the defendants. It is not in dispute that the defendant accepted goods without demur. On the contrary the defendants had issued 2 cheques against the invoices. However those cheques were dishonoured on presentation with the remarks 'exceeds arrangement vide Banker's memo dtd. 12/3/2019'. The particulars of the cheques are mentioned in paragraph 11 of the plaint. Since the cheques were dishonoured, the plaintiffs demanded payment from defendant Nos. 1 to 4. Consequently, fresh 2 cheques were issued to substitute the expired cheques. However, the defendant Nos.1 to 4 once again dishonoured the cheques. The plaintiffs therefore through their advocates issued notices under Sec. 138 on 25/3/2019 and another notice on 9/4/2019. As per the plaintiffs the total dues as on 31/3/2019, together with interest, was Rs.45,18,600.00.