NAGARJUNA PAPER MILLS LTD Vs. G MAHESH

JUDGEMENT

(1.) This appeal was filed against the judgment and decree dated 30-1-1987 in OS No. 1174 of 1984 on the file of the III Additional Judge, City Civil Court, Hyderabad whereby the learned Judge has decreed the suit against the appellant-defendant, as prayed for with costs and subsequent interest at 12% p.a. from the date of suit till the date of realisation.

(2.) Aggrieved by the said judgment and decree, the present appeal is filed contending that it view of the attitude of the respondent in showing disinterest in continuing the dealership of the appellant without giving any reasonable time to make appropriate arrangements, the respondent company was put to irreparable loss and, therefore, the Court should have allowed damages to the appellant-defendant, that the respondent-plaintiff is not entitled to refund of the deposit amount unless he clears the outstanding due to the appellant defendant, that the trial Court failed to see that the appellant-defendant has demanded the respondent-plaintiff to pay the amount due along with interest at 18% p.a under Ex.B5 itself, that the defendant is not entitled to receive any interest for the outstanding due from the plaintiff- respondent is illegal and contrary to the provisions of law, it is further contended that the lower Court failed to see that under the provisions of SALE OF GOODS ACT, 1930, in the absence of condition in the contract from payment of interest on the outstanding due, the appellant-defendant is entitled to claim interest and the respondent-plaintiff is also liable for payment of interest. The trial Court also erred in granting interest on the entire amount i.e., principal and interest. For all the above reasons, it is prayed to set aside the judgment and decree under appeal.

(3.) The above suit was filed for recovery of a sum of Rs.84,752.00 with interest, the defendant is a manufacturer and seller of paper products, the plaintiff was appointed as a dealer of the defendant for selling the paper products on the plaintiff depositing an amount of Rs. 1.00 lakh as a security deposit which carry an interest of 12% and thus an agreement was entered into between the parties. It was further agreed that the dealership would be terminated by either side by issuing notice, though the plaintiff accepted the dealership for the specific products i.e., MG Poster Paper, the defendant did not supply the said paper and the plaintiff decided to discontinue the dealership by addressing a letter dated 21-6-1984 and thus the plaintiff is entitled for refund of the deposit amount after giving credit to the total value of the paper to the tune of Rs.52,688.00 supplied by the defendant to the plaintiff and after deducting this amount, the plaintiff is entitled to Rs.84,752.00. inclusive of notice charges. Therefore, the suit was instituted for recovery of the said sum.