Bombay High Court Allows Recovery of Price of Goods Sold and Delivered in Suit for Recovery of Money. Plaintiff supplier entitled to principal amount of Rs.52,747.63 with interest at 6% p.a. from date of suit till realization.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The plaintiff, a supplier of handwoven cotton fabrics, filed a suit for recovery of Rs.66,462.01/- with further interest on the principal amount of Rs.52,747.63/- at 12% p.a. from the date of suit till payment. The plaintiff alleged that as per orders placed by the defendant, supplies were made from December 1977 onwards, and there was a current mutual running account between the parties. Specifically, under Order No. MAN/125 dated 31.8.1978, the plaintiff supplied 2723.50 meters of fabric and raised Bill No. KV/105/78 dated 10.11.1978 for Rs.17,744.13/-. The goods were dispatched under lorry receipt and documents negotiated through Central Bank of India. The defendant took delivery but did not retire the documents. The defendant requested direct sending of documents and made part payments, but the balance remained unpaid. The defendant admitted liability but disputed the quantum. The court examined the evidence, including the plaintiff's testimony and documents, and found that the plaintiff had proved the supply of goods and the defendant's failure to pay the full amount. The court held that the plaintiff was entitled to the principal amount of Rs.52,747.63 with interest at 6% p.a. from the date of suit till realization, rejecting the claim for higher interest. The suit was decreed accordingly.

Headnote

A) Civil Procedure - Recovery of Money - Suit for Price of Goods Sold and Delivered - Plaintiff supplier of handwoven cotton fabrics claimed recovery of Rs.66,462.01/- with interest - Defendant admitted liability but disputed quantum - Court held that plaintiff proved supply of goods and defendant's failure to pay - Decree for principal amount of Rs.52,747.63 with interest at 6% p.a. from date of suit till realization (Paras 1-10).

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Issue of Consideration

Whether the plaintiff is entitled to recover the sum of Rs.66,462.01/- with further interest on the principal amount of Rs.52,747.63/- at the rate of 12% p.a. from the date of the suit till payment and/or realisation.

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Final Decision

Suit decreed in favour of the plaintiff for a sum of Rs.52,747.63 with interest at 6% p.a. from the date of suit till realization.

Law Points

  • Recovery of price of goods sold and delivered
  • suit for recovery of money
  • interest on principal amount
  • current mutual running account
  • limitation period for suit on account
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Case Details

2005 LawText (BOM) (05) 189

SUIT NO. 1851 OF 1981

2005-06-24

S.U. Kamdar, J.

Ms. N. Pandya i/b. S.M. Menon for the plaintiff, N.H. Helekar for the defendant

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Nature of Litigation

Suit for recovery of money for price of goods sold and delivered.

Remedy Sought

Plaintiff sought recovery of Rs.66,462.01/- with further interest on principal amount of Rs.52,747.63/- at 12% p.a. from date of suit till payment.

Filing Reason

Defendant failed to pay the full price for handwoven cotton fabrics supplied by plaintiff.

Issues

Whether the plaintiff is entitled to recover the sum of Rs.66,462.01/- with interest at 12% p.a. from the date of suit till realization.

Submissions/Arguments

Plaintiff argued that goods were supplied as per orders and defendant failed to pay the balance amount. Defendant admitted liability but disputed the quantum claimed.

Ratio Decidendi

The plaintiff proved supply of goods and defendant's failure to pay the full price; hence entitled to principal amount with interest at 6% p.a. from date of suit.

Judgment Excerpts

The present suit has been filed for the recovery of sum of Rs.66,462.01/- with further interest on the principal amount of Rs.52,747.63/- at the rate of 12% p.a. from the date of the suit till payment and or realisation.

Procedural History

Suit filed in 1981; evidence recorded; judgment delivered on 24th June 2005.

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