UNIVERSAL GLASS v. BRILLIANT BOTTLERS INDIA PVT. LTD.
2007-08-01
SANJAY KISHAN KAUL
body2007
DigiLaw.ai
SANJAY KISHAN KAUL, J. ( 1 ) PLAINTIFF No. 2 is a public limited company duly registered and incorporated under the Companies Act, 1956. Plaintiff No. 1 is stated to be a unit of plaintiff No. 2. The plaintiffs are engaged in the manufacture and sale of empty glass bottles and such bottles are utilised for bottling of soft drinks. ( 2 ) IT is stated in the plaint that defendant No. 1 is one of the franchisees of defendant No. 2 and defendants are manufacturing, bottling and sale of various soft drinks. Empty bottles were purchased by the defendants in terms of the agreement between the parties. The order was placed on defendant No. 1 but it is stated that the liability is of both the defendants. ( 3 ) THE plaintiffs claim that they opened and maintained a running account in the name of defendant No. 1 in respect of supplies made to defendant No. 1. It is stated that there were certain cheques obtained from defendant No. 1 which used to be kept by the plaintiffs and defendant No. 1 called upon the plaintiffs vide its letter dated 12. 2. 1997 for replacement of the cheques in view of the change in the bank account. The liability is stated to be admitted by defendant No. 2 in terms of letter dated 7. 5. 1997 and in terms of letter dated 3. 12. 1997 admitted that a sum of Rs. 15. 00 lakh and Rs. 5. 00 lakh were to be adjusted in respect of payments due from defendant No. 1. ( 4 ) THE suit has been filed by the plaintiffs claiming the balance principal amount due as on 11. 12. 1997 amounting to Rs. 14,43,361. 00 apart from claim of past, pendente lite and future interest of 25% per annum on account of stated failure of the defendants to pay the amount. ( 5 ) THE defendants were served by publication but none put in an appearance for the defendants and the plaintiffs were directed to file affidavit of evidence. The order sheet shows that there are no formal orders passed, proceeding ex parte against the defendants. It is, thus, directed today that the said defendants are proceeded ex parte. ( 6 ) THE plaintiff has filed the affidavit of evidence of Mr. Anil Girotra (PW1), finance Director of plaintiff No. 1 company. Mr.
The order sheet shows that there are no formal orders passed, proceeding ex parte against the defendants. It is, thus, directed today that the said defendants are proceeded ex parte. ( 6 ) THE plaintiff has filed the affidavit of evidence of Mr. Anil Girotra (PW1), finance Director of plaintiff No. 1 company. Mr. Girotra has identified the signature of Mr. Narender Sapra as its Director and authorised signatory, who has signed the plaint and the Board Resolution dated 39. 7. 1999 has been proved as Exhibit PW-1/1. The Board Resolution authorising the witness to file the affidavit has been proved as Exhibit PW-1/1a. The witness has also proved letters dated 21. 12. 1996 and 2. 1. 1997 sent by defendant No. 1 for placing the orders as Exhibits PW-1/2 and PW-1/3 respectively while the letter dated 28. 12. 1996 regarding part payment sent by defendant No. 1 has been proved as exhibit PW-1/4. ( 7 ) THE letter addressed by defendant No. 1 dated 27. 1. 1997 requesting the plaintiff to return certain cheques and for issuance of fresh cheques has been proved as Exhibit PW-1/5 and the request of the plaintiff for issuance of fresh cheques made vide letter dated 12. 2. 1997 has been proved as Exhibit PW-1/6. ( 8 ) THE liability is sought to be fastened on defendant No. 2 in view of letter dated 7. 5. 1997 (Exhibit PW-1/7), which is in the following terms: "dated: 7th May, 1997 to, m/s. Universal Glass sahibabad dear Sir, this has reference to the meeting today with Mr. Narendra Supra and Mr. Anil saigal. Please arrange to supply the following bottles to the parties mentioned below: m/s. Mccoy, Bombay: Schweppes Limon - 13,000 Cases sports Cola - 40,000 Cases m/s. Brilliant Bottlers: Sports Cola - 30,000 Cases take Aways - 2 lacs bottles the value of the above bottles is around 100 lacs. We will make the payment of the same along with old payments of Rs. 32 lacs due from Mccoy.
We will make the payment of the same along with old payments of Rs. 32 lacs due from Mccoy. The payments would be made as under 14th May 97 :- 32 lacs 21st May 97 :-25 lacs 31st May 97 :- 25 lacs 11th June 97 :- 25 lacs 21st June 97 :- 25 lacs thanking you, yours sincerely, for Cadburyschweppes Beverages India Pvt. Ltd. Sd/- ashok Jain (V. P. and Country Head)" ( 9 ) SIMILARLY defendant No. 2 addressed a letter dated 3. 12. 1997 (Exhibit PW-1/8) asking certain amounts to be adjusted and making payment on behalf of the franchisees. The statement of account has been proved as Exhibit PW-1/9 and the letters of demand dated 18. 6. 1997, 21. 6. 1997, 25. 6. 1997, 1. 10. 1997, 8. 1. 1998 and 7. 2. 1998 have been proved as Exhibits PW-1/10, PW-1/11, PW-1/12, PW-1/13, PW- 1/14 and PW-1/15 respectively. The copies of invoices remaining outstanding have been collectively proved as Exhibit PW-1/16. ( 10 ) IN view of the aforesaid evidence led by the plaintiffs which is unrebutted, the liability of defendant No. 1 towards the principal amount has clearly been established. However, insofar as the liability of defendant No. 2 is concerned, it is not in dispute that the plaintiff supplied the empty bottles only to defendant No. 1. In respect of certain other transactions payments have been made by defendant No. 2 on behalf of its bottlers but there is nothing to show on record that there is any general acceptance of liability by defendant No. 2 to clear outstandings on behalf of its bottlers. I find no sufficient material on record to affix liability due from defendant No. 1 on defendant No. 2 in respect of the supplies in question. ( 11 ) INSOFAR as the question of rate of interest is concerned, taking into consideration the prevailing rate of interest at the relevant time, I am of the considered view that the plaintiff be held entitled to simple interest @ 12 per cent per annum. ( 12 ) A decree is passed in favour of the plaintiffs and against defendant No. 1 for the sum of Rs. 14,43,361. 00 along with simple interest @ 12 per cent per annum from 11. 12. 1997 till date of payment.
( 12 ) A decree is passed in favour of the plaintiffs and against defendant No. 1 for the sum of Rs. 14,43,361. 00 along with simple interest @ 12 per cent per annum from 11. 12. 1997 till date of payment. The plaintiffs will be entitled to proportionate costs excluding legal fee since no assistance has been rendered by learned counsel for the plaintiffs today. ( 13 ) DECREE sheet be drawn up accordingly. IA No. 5230/2004 (u/o 5 R 20 CPC) ( 14 ) IN view of the orders passed on 30. 11. 2004 on IA No. 7961/2004, the present application does not survive for consideration and is disposed of.