Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2013 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 421 - HC - Companies LawRecovery Suit - Under the Raw Material Assistance Scheme (RMAS), the plaintiff procures raw material from canalized/govt. agencies and others, for and on behalf of the SSU by making payment directly to the supplier and delivering the said raw material to the said SSU as per their requirement – Held that:- The defendants were in breach of the agreement dated June 25, 1999 and were jointly and severally liable to pay the acknowledged sum along with interest @ 18% per annum from the date of institution of the suit till realization of the amount - There was no merit in the applications for leave to defend filed by the answering defendants - The same were accordingly liable to be dismissed - In terms of the agreement dated 25th June, 1999, which was the written contract between the parties and the foundation of the suit of the plaintiff u/O XXXVII of the Code, the admitted liability as on 25th June, 1999 - As regards interest payable to the plaintiff, this being a suit under Order XXXVII of the Code of Civil Procedure which by itself was a self- contained code, the claim of the plaintiff for the grant of interest wholly depends upon the terms of the agreement between the parties - The rate of interest as provided for in the agreement dated December 5, 1989 was to be 16% from the date of the debit of the amount till reimbursement. The suit under Order 37 was based on the written acknowledgment of the defendants and it was held by this Court that though the defendants specifically denied the written acknowledgment and alleged that the case of the plaintiff was based on a false document and the claim was barred by time, leave to defend the suit could be granted to the defendants only upon their furnishing a bank guarantee for the amount decreed by the trial court and in case of their failure to do so, the plaintiff would be entitled to pursue her execution application. National Small Scale Industries v. Novavision Electronics Pvt. Ltd. & Ors. [2006 (7) TMI 574 - DELHI HIGH COURT] - Not only has the agreement between the parties, but the RMAS also stipulated that the defendant no. 1 was required to make payments to the plaintiff from time to time - It was manifestly clear from the record that the defendants themselves gave a proposal to the plaintiff for re-scheduling of payments due from them and it was in this backdrop that the agreement dated 25th June, 1999 was entered into between the parties - Having failed to abide by the terms of the agreement dated 25th June, 1999, it does not now lie in the mouth of the defendants to allege that they have a substantial defense to the suit.
|