S. KUMAR SYNFABS LTD. Vs. BOMBAY SAREE CENTRE

JUDGEMENT

(1.) THIS is a Civil Revision filed by M/s. S. Kumar Synfabs Limited-plaintiff against the order dated 17.5.99 passed by Civil Judge, Senior Division, Chandigarh whereby he allowed the defendants permission to defend the suit unconditionally. Facts :

(2.) M /s. S. Kumar Synfabs Company Limited incorporated under the Companies Act filed suit under Order 37 of the Code of Civil Procedure, 1908 for the recovery of Rs. 12,69,591/- with future interest at the rate of 12 per cent per annum. It was alleged in the plaint that plaintiff-Company is engaged in the business of supplying textile goods to various cities throughout India. M/s Bombay Saree Centre defendant No. 1 is a partnership concern and Shri Janak Raj Gupta and others are its partners. On the request of the defendants, plaintiff Company direct as well as thorough its sister concern STM Fabrics and S. Kumar Company from time to time supplied textile goods of total sum of Rs. 12,36,876/-. Out of this amount, a total sum of Rs. 2,27,398/- towards incentive and security was adjusted leaving behind an outstanding liability of Rs. 10,09,478/- towards the plaintiff. On the demand of the outstanding amount by the plaintiff, the defendants wrote a letter dated 4.1.95 to the plaintiff Company confirming the outstanding amount of Rs. 10,09,478/- after deduction of incentive and security. Defendants agreed to send a demand draft. Cheque No. 081077 dated 6.1.96 for Rs. 9478/- drawn on Punjab National Bank, Chandigarh was sent to the plaintiff Company. Defendant firm requested the plaintiff Company vide their letter dated 5.1.96 that the remaining outstanding amount of Rs. 10 lacs plus Rs. 2,69,591/- as interest that accumulated upto March 31, 1997 would be paid in monthly instalments of Rs. 25000/- each. Defendant firm executed demand promisory note for a sum of Rs. 100000/- in favour of the plaintiff Company whereas they agreed to pay the amount with interest at the rate of 12 per cent per annum.

(3.) CIVIL Judge, Senior Division, Chandigarh gave permission to the defendants to defend the suit unconditionally as in his opinion triable issues are there and the pleas taken by the defendants appear to have substance and they are not frivolous and vexatious.