This suit is for recovery of a sum of Rs.71,19,888/- paid by the plaintiff towards supply of machineries with interest from the defendant.
2. The case of the plaintiff is as follows :
(i) The plaintiff Board was established to promote Khadi and Village Industries in the state to provide employment and training to rural artisans to improve their lot. The plaintiff wanted to modernise the footwear unit at Ambattur. The plaintiff placed an order with the defendant for the supply of certain machineries. The defendant agreed to supply, erection, commission and trial run the machines for a total cost of Rs.39,00,000/-. The time limit was fixed at 3 months and the defendant also agreed to give training to the workers to handle the machines at their cost. The defendant insisted to pay advance of 90% of the purchase value of the machines. The defendant failed to erect and commission the machines even after receipt of the payment. Hence, the plaintiff issued a lawyer notice, dated 05.07.1995. The defendant sent a reply, dated 21.07.1995 containing false and incorrect allegations.
(ii) The plaintiff issued a rejoinder calling upon the defendant to produce the particulars of the machine, make and other particulars as the machines supplied by the defendant are not in accordance with the order placed by the plaintiff.
(iii) The machines supplied by the defendant were not according to the orders placed. They were not in working condition and the plaintiff could not put it for production. The plaintiff requested the expert body, Central Leather Research Institute, Madras to test the machines and report its condition, workability etc. The plaintiff requested the defendant to replace the machines and supply brand new machines according to the specification and take back the defective machinery or return the money paid by the plaintiff with interest at 24% from the date of payment till the date of return of the money.
(iv) The defendant has received Rs.42,58,800/- from the plaintiff on 10.02.1995, 17.05.1995 and 19.12.1995. From the date of plaint till the date of the suit interest on the above said amount comes to Rs.28,30,386/-. The fee paid to expert bodies is Rs.20,000/- and Rs.10,702/- being the interest thereon. Therefore, totally the defendant is liable to pay Rs.71,19,888/- with subsequent interest.
3. The defendant was called absent and set exparte. The authorised person of the plaintiff has been examined as P.W.1 and Exs.P.1 to P.15 have been marked. After perusal of the records, this Court directed the plaintiff to produce the report of the expert and the same has been filed before this Court. The report of the expert is marked as Ex.P.16.
4. From the evidence of P.W.1 and the above said documents, the plaintiff has established that it placed orders for supply of machineries with the defendant. The plaintiff also paid Rs.42,58,800/- to the defendant towards the machineries. As per the expert report, Ex.P.16, the machineries supplied do not satisfy the basic qualities required. In spite of the lawyer's notice, the defendant has neither supplied the machineries as per the specifications or returned the amount received from the plaintiff.
5. Having not supplied the machineries as per the specifications, after receipt of the amount, the defendant is bound to pay interest on the amount received. The plaintiff has established its case. Therefore, the plaintiff is entitled to the relief as prayed for.
In fine the suit is decreed as prayed for with costs.
28.06.2017 Speaking order Index : Yes / No tsvn P.KALAIYARASAN, J tsvn C.S.No.509 of 1999 28-06-2017 http://www.judis.nic.in