- (1.) THIS First Appeal under Section of the Code of Civil Procedure arises out of judgment and decree dated 20.12.2006 in Original Suit No. 111 of 2001 filed by M/s. Pratap Pharmaceuticals, a partnership firm through its partner Dr. Virendra Pratap, decreeing the suit for Rs. 28,21,560/ - as the balance amount payable with interest of Rs. 46,73,759.78P and future interest at the rate of 25.5% for supply of Ayurvedic Medicines and interest at the rate of 25.12 % monthly compoundable for supply of medicines against defendant Nos. 5 and 6. The Civil Judge, Senior Division, Lucknow further directed that the entire amount be paid within three months failing which the plaintiff will be entitled to execute the decree.
(2.) ACCORDING to the plaint allegations, the plaintiff is a partnership firm dealing with Ayurvedic Medicines under the name and style of M/s. Pratap Pharmaceuticals, with its office and factory located at 19/772 Indira Nagar, Ring Road, Lucknow. The firm is registered as a Small Scale Industry with the Directorate of Industries. It is engaged in the business of supply of Ayurvedic Medicines to the defendants, at different destinations since 1990, as directed from time to time and was receiving payments regularly upto the year 1993. In due course of business, the plaintiff's firm received orders from the defendants for supply and delivery of Ayurvedic Medicines to Kshetriya Ayurvedic Evam Unani Karyalaya, Allahabad - defendant No. 4; Kshetriya Ayurvedic Evam Unani Adhikari, Ghaziabad - defendant No. 5 and Rajkiya Ayurvedic College, Nirmanshala, Pilibhit - defendant No. 6. The plaintiff executed the orders and supplied the medicines to the respective Colleges/Nirmanshalas under its various bills. The medicines were dispatched through road transport. The list of the orders along with the bills and the amount due to be paid along with interest is given in detail in para 4 of the plaint. The details in respect of the bills of the year 1993 -94 given in para 4 of the plaint would show that the plaintiff claimed an amount of Rs. 2,01,180/ - each in respect of bill Nos. PP/9/93 -94 and PP/10/93 -94 dated 10.8.1993 towards order Nos. 904 and 906 of the year 1993 -94 for the medicines supplied to Kshetriya Ayurvedic Evam Unani Karyalaya, Allahabad - defendant No. 4; and an amount of Rs. 3,84,742.19 towards interest @ 21.84 % monthly compoundable on each of the two bills. The plaintiff claimed an equal amount of Rs. 2,01,600/ - towards each of six bills No. PP/7/94, PP/8/94 - all dated 29.9.1993, PP/9/04 dated 29.9.1993, PP/1/94, PP/2/94 and PP/3/94 - all dated 28.3.1994 for the orders given on 28.3.1994 in respect of first three bills and for the orders given on 26.3.1994 in respect of remaining three bills along with further amount of Rs. 3,25,322.95 each as interest @ 21.84 % monthly compoundable for the supply made to Kshetriya Ayurvedic Evam Unani Adhikari, Ghaziabad - defendant No. 5. In the same paragraph No. 4, the plaintiff gave details of six bills of the same amount of Rs. 2,01,600/ - towards each of six bills No. PP/4/94, PP/5/94, PP/6/04 - all dated 28.3.1994, PP/10/94, PP/11/94, and PP/12/94 - all dated 29.3.1994 for the orders given on 26.3.1994 in respect of first three bills and for the orders given on 28.3.1994 in respect of remaining three bills. The plaintiff also claimed Rs. 3,25,322.95 on each bill towards interest @ 21.84% monthly compoundable for the supply made to Rajkiya Ayurvedic College Nirmanshala, Pilibhit - defendant No. 6. The plaintiff -firm thus claimed a total amount of Rs. 74,94,919.78 calculated upto 9.11.1998 including interest. The total amount of bills for the medicines supplied is Rs. 28,21,560/ -. The interest of Rs. 46,73,359.78p was claimed at the rate given in "The Interest On Delayed Payment to Small Scale & Ancillary Industrial Undertaking Act 1993" after giving a grace period of two months, from the date of the bill till the date of filing of the suit i.e. 9.11.1998.
(3.) IT is stated in para 7 of the plaint that the goods supplied by the plaintiff were duly received at the destination in good condition and were consumed by the defendants without any complaint whatsoever. The defendants refused to make payment and referred to some radiogram/fax message dated 26.3.1994 by which as per defendants' information the payments were stopped by the order of the State Government in view of investigation initiated by the Central Bureau of Investigation. Some directions were also issued on 13.11.1995 superintending the earlier radiogram in which it has been directed by the Government to make payments to the firms who had been supplying goods regularly but this fact was deliberately concealed by the defendants from the plaintiff. A legal notice dated 19.7.1998 under Section CPC was sent by the plaintiff demanding the defendant to pay the unpaid outstanding bills along with interest detailed in the preceding paragraph of the plaint. The said notice was received by the defendant on 22.07.1998. In para 14 (a) and 14 (b) of the plaint, the plaintiff had quoted the provisions of 'Act of 1993' for providing rate of interest computed at one and half time the Prime Lending Rate of State Bank of India, which is compoundable monthly. In para 15 of the plaint, the plaintiff stated that the cause of action accrued to the plaintiff's firm within the jurisdiction of Lucknow at the Office of the Director, U.P. Ayurvedic Evam Unani Services, 9th Floor Indira Bhawan, Ashok Marg, Lucknow - defendant No. 3 on 10.8.1993 26.3.1994 and 28.3.1994 when the orders for medicines had been placed by the defendant and were accepted and executed by the plaintiff and also the radiogram dated 26.3.1994 issued by the Government for not making payment and also when plaintiff came to know that the payments were made to some other companies who had obtained orders from the court, and also came to know that the Ban imposed by the Government was rescinded vide Government Order dated 13.11.1995, and lastly when despite of notice under Section C.P.C. dated 19.7.1998 received by the defendant on 22.7.1998, the defendant failed to comply with the terms of the said notice.;