CHEMICO PROCESS COMPANY Vs. ACMECHEM PVT LIMITED

JUDGEMENT

(1.) The plaintiff Chemico Process Company instituted the instant suit claiming decree for Rs. 13,24,940/-, interim interest, interest on judgment and costs against the defendant Acmechem (Pvt.) Ltd.

(2.) Briefly the case of the plaintiff may be narrated thus. Pursuant to the order placed by the defendant and/or the request made by the defendant, the plaintiff from time to time on diverse dates sold and delivered to the defendant various plants, machinery and equipments, the price of the same being Rs. 30,40,960/-. The plaintiff requested the defendant to furnish Central Sales Tax Declaration Forms and also to pay the sales tax payable for sale of the said goods. The defendant accepted the said goods. The plaintiff duly prepared bills for the price of the materials sold and delivered and submitted the same to the defendant. The defendant represented to the plaintiff that since the defendant was registered with the Gujarat State Commercial Tax Authorities, the plaintiff should charge from them 4% Central Sales Tax on goods sold and delivered to them instead of 10% of sales tax. The defendant further held out that they would furnish the requisite sales tax declaration forms for availing of such concessional rates of 4% instead of 10%. In spite of repeated demands, the defendant has failed and neglected to furnish the plaintiff with the sales tax declaration forms for balance 6% sales tax payable by the defendant. The plaintiff is claiming Rs. 1,75,440/- on account of the balance 6% sales tax. The defendant from time to time made various part payments to the plaintiff. After taking into account all the part payments made by the defendant, the last of which being made on 10th August, 1994 and after giving credit to the defendant for the said part payments, the sum of Rs. 7,76,714/- is now due and payable by the defendant to the plaintiff on account of balance of price of the goods sold and delivered. The plaintiff is entitled to claim interest on the said sum of Rs. 7,76,714/- at the rate of 18% per annum from 2nd December, 1994. The total sum of Rs. 13,24,940/- inclusive of interest at the rate of 18% per annum from 2nd December, 1994 to 9th August, 1997 and the amount due on account of sales tax as stated above is now due and payable by the defendant to the plaintiff. Particulars of the said claim have been set out in paragraph 14 of the plaint. By the letter dated 2nd December, 1994 the defendant acknowledged in writing its liability in respect of the dues of the plaintiff on account of the equipments sold and delivered by the defendant to the plaintiff as per order of the defendant and promised to settle the same. But the defendant failed and neglected to settle the claim of the plaintiff.

(3.) The defendant has contested the suit by filing the written statement wherein the material allegations contained in the plaint have been denied. It has been alleged by the defendant in the written statement that the plaintiff has no cause of action against the defendant and that the suit is barred by limitation. The case of the contesting defendant, inter alia, is that the alleged claims of the plaintiff are wholly contradictory and inconsistent in terms and cannot be reconciled and such contradictory and inconsistent claims of the plaintiff cannot be entertained. The letter dated 2nd December, 1994 disclosed by the plaintiff does not and cannot amount to an acknowledgment of jural relationship by the defendant. The plaintiff has failed to establish the acknowledgment of any jural relationship by the defendant within the period of limitation. It has been denied by the defendant that a sum of Rs. 7,76,714/- would remain or is due and payable by the defendant to the plaintiff on account of balance of price of the plant, machinery and equipments sold by it, as alleged. Further case of the defendant is that the alleged particulars in annexure 'C' to the plaint are not true or correct reflection of the particulars of dealings and transactions by and between the parties and as such no reliance can or should be placed on the same. It is denied by the defendant that the plaintiff is entitled to or can claim interest on the said sum of Rs. 7,76,714/- or on any part or portion thereof or on any sum whatsoever. It is denied by the defendant that a sum of Rs. 13,24,940/- or any part or portion thereof or any sum whatsoever is due and payable by the defendant to the plaintiff as alleged. It has been averred by the defendant that the dues of the plaintiff were fully and finally settled by the defendant by payments made as per bills of the plaintiff and the plaintiff can have no further claim against the defendant. The suit has been filed with malafide intent and/or an ulterior motive of attempting to make an unlawful gain.