LUX INDUSTRIES LTD. Vs. SURENDRA CHOPRA

JUDGEMENT

(1.) This suit has been filed for recovery of dues for a sum of Rs.11,23,342/- together with interest thereon from the defendant.

(2.) According to the plaintiff, it is a company duly incorporated under the Companies Act, 1956 carrying on business of manufacturing and selling different hosiery products in the different brand-names such as 'Lux Cozy', 'Lux ONN' etc. The defendant acted as distributor of the plaintiff since 2013 in respect of the sale of hosiery products of one particular brand of the plaintiff being known as 'ONN' brand hosiery product, at different parts of the State of Rajasthan.

(3.) Defendant came to the registered office of the plaintiff sometime in 2013 at 39, Kali Krishna Tagore Street, Kolkata ? 700007, within the jurisdiction of this Court and represented that he is one of the biggest distributors of different hosiery products at Jaipur and approached to act as a distributor of the plaintiff in the State of Rajasthan specifically at Jaipur area with regard to one of the famous and costliest brand of the plaintiff, inter alia, 'ONN' brand hosiery product. Considering defendant's such representation to be bona fide plaintiff agreed to appoint the defendant as distributor at Jaipur, inter alia, on various terms and conditions. The plaintiff started and kept on supplied its hosiery products of 'ONN' brand to the defendant as distributor upon placement of order time to time as per the understanding and verbal agreement arrived at between the plaintiff and defendant. Pursuant to the aforesaid agreement, the defendant, by an account payee cheque, paid to the plaintiff a sum of Rs.2,00,000/- as and by way of security to the plaintiff with regard to supply of the said products. As per agreement arrived at between the parties the defendant was liable to pay to the plaintiff a sum of Rs.75,76,999/- with regard to supply of 'ONN' brand hosiery product to the defendant. The defendant, during the period of 10th June, 2013 to 24th August, 2015, paid to the plaintiff, by way of cheques and RTGS, a total sum of Rs.43,07,578/- as an advance towards payment of the 'ONN' brand hosiery product supplied to the defendant. All payments aforesaid were received by the plaintiff at the office of the plaintiff's Director at 39, Kali Krishna Tagore Street, Kolkata ? 700007. All materials supplied to the defendant being 'ONN' hosiery products, total amounting to Rs.75,76,999/- were duly received by the defendant without raising any dispute or objection. Subsequently, the defendant returned goods, inter alia, 'ONN' hosiery products valued at Rs.16,47,448/-. The plaintiff gave cash discount, sales scheme, interest on dealership, etc. to the defendant for a sum of Rs.5,71,736/- which the plaintiff would generally give to all of its distributors. After giving adjustment of a sum of Rs.65,26,762/- as shown in the plaint, a sum of Rs.8,50,237/- remained due and payable by the defendant to the plaintiff. The plaintiff made demands to the defendant and reminders were also issued on behalf of the plaintiff to that effect but the defendant failed and neglected to make payment of the said sum of Rs.08,50,237/-. Accordingly, a sum of Rs.11,23,342/- has become due taking into consideration of an interest @ 18% per annum with effect from May, 2014 till 30th April, 2016 being a sum of Rs.2,73,105/- together with principal sum of Rs.8,50,237/- totaling Rs.11,23,342.00/-. Since the defendant failed and neglected and/or refused to repay the outstanding amount together with interest as demanded by the plaintiff, cause of action for the suit arose for a claim of Rs.11,23,342/-.