Case Note & Summary
The plaintiff, Dongreen Resins & Chemicals Private Limited, filed a summary suit under Order XXXVII of the Code of Civil Procedure, 1908 against the defendant, M/s. Balaji Fiber Reinforce Pvt. Ltd., for recovery of Rs. 1,47,30,450/- along with interest at 21% per annum. The plaintiff supplied Polyester Resin ISO and Polyester Resin Ortho to the defendant pursuant to purchase orders dated 5 September 2011, 8 October 2011, and 19 December 2011, under 12 invoices totaling Rs. 1,95,79,951/-. The purchase orders provided for payment within 60 days from receipt of material, and the invoices stipulated interest at 24% per annum on overdue amounts. The defendant received the goods without objection. The plaintiff sent repeated emails demanding payment. On 13 December 2011, the defendant emailed the plaintiff admitting difficulty in making payments and requesting dispatch of material on replacement basis. The defendant made part payments totaling Rs. 48,49,501/-, leaving a balance of Rs. 1,47,30,450/-. The writ of summons was served on 4 July 2012, and the defendant's advocate filed a Vakalatnama on 11 July 2012. The summons for judgment was served on 29 August 2012, but the defendant filed no affidavit in reply. The court held that since the defendant failed to file an affidavit in reply and admitted the liability, there were no triable issues. The court rejected the defendant's oral request for unconditional leave to defend, noting that the defendant had ample opportunity to file a reply. The court decreed the suit in favor of the plaintiff for Rs. 1,47,30,450/- with interest at 21% per annum from the date of the suit until payment, and costs.
Headnote
A) Civil Procedure - Summary Suit - Order XXXVII Rule 2 CPC - Leave to Defend - Where defendant fails to file affidavit in reply and admits liability, no triable issues arise and plaintiff is entitled to summary judgment. (Paras 1-8) B) Contract Law - Sale of Goods - Interest on Overdue Payments - Where invoices contain interest clause and goods are accepted without objection, defendant is liable to pay interest at the contracted rate. (Paras 3-4) C) Evidence - Admission - Email Communication - An email admitting difficulty in making payment constitutes an admission of liability and receipt of goods. (Paras 5-6)
Issue of Consideration
Whether the defendant is entitled to unconditional leave to defend the summary suit when no affidavit in reply is filed and the debt is admitted.
Final Decision
The court decreed the suit in favor of the plaintiff for Rs. 1,47,30,450/- with interest at 21% per annum from the date of the suit until payment, and costs. The summons for judgment was made absolute.
Law Points
- Summary suit
- Order XXXVII CPC
- unconditional leave to defend
- admission of liability
- interest on overdue payments
