Case Note & Summary
The appellant, Kasturi and Sons Ltd., publisher of 'The Hindu' and other publications, filed a suit for recovery of Rs.10,03,322.50/- against the respondents, an advertising agency and its partners, for unpaid advertisement bills from November 1999 to March 2000. The trial court dismissed the suit for non-prosecution on 1 July 2017. The appellant appealed under Section 96 CPC. The High Court noted that the respondents did not appear despite service and that the trial court's dismissal was not justified. The court examined the plaint and found that the plaintiff had established a running account and that the defendants had not paid the outstanding amount. The court allowed the appeal, set aside the trial court's judgment, and decreed the suit for the principal amount of Rs.8,72,298.50/- with interest at 6% per annum from the date of suit till realization, along with costs.
Headnote
A) Civil Procedure - First Appeal under Section 96 CPC - Dismissal of Suit for Non-Prosecution - The trial court dismissed the suit for default when the plaintiff's counsel was absent. The High Court held that the dismissal was not justified as the suit was of 2014 and the plaintiff had a valid claim. The appeal was allowed and the suit was decreed. (Paras 1-20) B) Contract - Recovery of Money - Running Account - The plaintiff, a newspaper publisher, engaged the defendant advertising agency for advertisements. The defendant enjoyed credit facilities and payments were due. The court found that the defendant had not paid the outstanding amount of Rs.8,72,298.50/- with interest at 23.5% per annum. The suit was decreed for the principal amount with interest at 6% per annum from the date of suit till realization. (Paras 3-20)
Issue of Consideration
Whether the trial court was justified in dismissing the suit for non-prosecution and whether the appellant is entitled to recovery of the suit amount with interest.
Final Decision
The appeal is allowed. The judgment and decree dated 1 July 2017 in O.S.No.3534 of 2014 passed by the IV Additional Judge, City Civil Court, Chennai, is set aside. The suit is decreed for a sum of Rs.8,72,298.50/- with interest at 6% per annum from the date of suit till realization, along with costs.
Law Points
- Order 41 Rule 1 CPC
- Section 96 CPC
- Recovery of money
- Running account
- Interest on delayed payment
- Indian Newspaper Society accreditation
