SUDHANSHU SINGHANIA Vs. EIMCO K.C.P. LTD

JUDGEMENT

(1.) The instant suit filed by the Plaintiff praying for decree for Rs.10,94,751.00 along with interest and direction to render true accounts as well as other prayers against the Defendant company.

(2.) The sum and substance of the Plaintiff's case is that in December 1987 the Defendant agreed to hire the services of the Plaintiff as its agent for marketing its products in the eastern region of India on regular basis. On January 2, 1988 and agreement was entered into between the parties herein initially for a period of six months. The agreement was recorded by the Defendant in the later dated January 2, 1988. The initial period of six months was extended from time to time. Pursuant thereto the Plaintiff rendered its services to the Defendant in marketing its products in the eastern region of India. On November 17, 1990 the Defendant modified the terms and conditions of service of the Plaintiff with respect to the stipulation on payment of commission. In course of business a sum of Rs.8,97,558.27p became payable by the Defendant to the Plaintiff; apart from this father amount of Rs.98,200.00 became payable on account of commission; Rs.23,442.00 toward tax deduction at source and Rs.75,550.73p on account of interest on the principal amount. In spite of repeated demands the Defendant neglected and failed to decide amount to the Plaintiff. The agreement was entered into between the parties herein at the office of the Plaintiff at 227, Chittaranjan Avenue, Kolkata - 700006 within the jurisdiction of this Court. Having no alternative, the Plaintiff instituted the instant suit praying for recovery of money along with interest as prayed for.

(3.) The Defendant appeared in the suit and contested the same by filing written statement. The Defendant admitted the letter dated January 2, 1988. It is contention of the Defendant that it was merely professionally understood or agreed that the Plaintiff should market the Defendant's manufactured products on a job to job basis and on experimental basis for a period of six months only subject to payment of commission for service rendered depending upon the volume of business. Rates of commission, as pleaded in the written statement, differed according to the volume of business. It is admitted that the Plaintiff, from time to time, rendered service to the Defendant in marketing its products it is admitted that old account was settled up to March 15, 1993 and an amount of Rs.1,00,034.00 was due and owing from the Defendant. Thereafter the Defendant, from time to time, made various payments aggregating to a sum of Rs.92,000.00 leaving a balance sum of Rs.8,034.00 outstanding as of November 26, 1993. The Defendant denied all the other allegations contained in the plaint.