LAWS(ORI)-2010-4-17

ZYDUS PHARMACEUTICALS LTD Vs. B RAJA RAM PATRA

Decided On April 16, 2010
Zydus Pharmaceuticals Ltd Appellant
V/S
B Raja Ram Patra Respondents

JUDGEMENT

(1.) The petitioner has challenged the order dated 27.04.2009 passed by the learned Civil Judge (Senior Division), 1st Court, Cuttack in C.S. No. 127 of 2006, wherein he rejected the petition filed under Order-14, Rule-2 (2)(a) read with Section 21 of C.P.C., by the petitioner.

(2.) Opp. party as plaintiff filed the aforesaid suit against the defendant claiming Rs. 70,86,338.54/- with interest. As per his case, he was dealing in electronic goods at Visakhapatnam. Cadila Health Care Ltd., a private company which was manufacturing and marketing pharmaceuticals, cosmetic and other products, appointed the plaintiff as their Clearing and Forwarding Agent for the State of Orissa by opening their office at Cuttack. An agreement was executed between the parties to that effect on 01.02.1999. Accordingly, the plaintiff started its establishment at Cuttack by taking a godown-cum-office on rent and appointing two employees. Subsequently, the aforesaid company bifurcated its business by forming another sister concern company in the name and style of Zydus Pharmaceuticals Limited. Cadila Healthcare Ltd., dealt in manufacturing of the aforesaid products while Zydus Pharmaceuticals Ltd. (defendant) marketed the same.

(3.) Plaintiff invested a huge amount of money to fulfil the requirements of the defendant-company. He shifted his business from Visakhapatnam to Cuttack, took a godown-cum-office on rent, furnished the office with Computer, Printer, Air conditioner, Fax, Telephone line etc. to carry out the business as Clearing and Forwarding Agent. He invested more than a sum of Rs. 1,50,685.00/-. Besides the said investment, as per the requirement of the Cadila Health Care Limited, the plaintiff dispatched a demand draft of Rs. 7,50,000.00/- in its favour towards security deposit which was subsequently refunded along with interest with direction to deposit a sum of Rs. 7,86,813.00/ - with Zydus Pharmaceuticals Limited. Accordingly, he deposited the said amount on 30.03.2001, but unfortunately, without any valid reason, and without cancelling the agency of the plaintiff, the defendant company stopped supply of its product to the plaintiff with effect from 18.12.2002 and directed him to hand over the entire stock available with him to one M/s. Essar Associates of Jaunliapati, Cuttack, a newly appointed Clearing and Forwarding Agent of the defendant. So, the plaintiff filed the aforesaid suit with prayer as mentioned earlier. On being noticed defendant appeared in the suit and filed written statement. It also filed a petition under Order-14, Rule-2(2)(a) read with Section 21 of C.P.C., to hear on the point of jurisdiction as preliminary issue and pass necessary orders thereon.