JUDGEMENT
SOUMEN SEN, J. -
(1.) THE suit is instituted for recovery of price of
goods sold and delivered by the plaintiff to the defendant No.1. In spite
of repeated opportunities being given to the defendant No.1 to appear
and contest the suit, the said defendant No.1, has failed to enter
appearance.
(2.) THE defendant No.2 appeared and produced certain documents in this proceeding in order to enable the Court to adjudicate issues involved
in this suit. Although, in view of Order 8 Rule 5 of the Code of Civil
Procedure, the plaintiff is otherwise entitled to a decree since the
defendant No.1 although had the opportunity to appear and contest the
proceeding did not enter appearance, however, the plaintiff has produced
one witness to give evidence in support of its claim in the suit.
The case of the plaintiff as it appears from the Plaint is that the plaintiff has been a regular supplier of diverse quantities and qualities of
tea to the defendant No.1, the mode of payment appears to be by way of
bills of exchange drawn by the plaintiff on the defendant No.1. The
plaintiff used to ship such quantities and qualities of tea to the
defendant No.1. The plaintiff would send the documents in respect of
such shipment including the Bill of Lading and the Invoice through the
defendant No.2 to the banker of the defendant No.1 in Singapore. The
invoice used to be sent by the plaintiff through the defendant to the
banker of the defendant No.1 which would contain the payment and
collection terms which varied from 90 to 180 days on "documents against
acceptance" basis. The defendant No.1 in the past had made payment in
terms of the aforesaid arrangement. Between January, 2001 and
February, 2002, the defendant No.1 placed diverse orders on the plaintiff
for supply of diverse quantities and qualities of tea. Pursuant to such
order, the plaintiff sold and delivered to the defendant No.1 the said
qualities and quantities of tea particulars whereof are set out
hereinbelow: -
Following the arrangement alluded to above, the documents were sent to the defendant No.1 in respect of such consignments from the office of the defendant No.2. The said documents were duly accepted by the defendant No.1 and the said consignments were duly received and/or taken delivery of by the defendant No.1 at Singapore in connection with the aforesaid sale of tea, the plaintiff drew several bills of exchanges on the defendant No.1 which were duly accepted by the defendant No.1. The plaintiff got the said bills discounted through the defendant No.2 and received payment of the discounted value thereof from the defendant No.2. The defendant No.1, however, has failed, neglected and/or refused to honour its obligation under the said bills and to make payment thereunder on the due dates mentioned in such bills. The defendant has failed, neglected and refused to honour any of the 14 bills of exchange, although, the due date of amounts of such bills had expired.
(3.) THE defendant in admission and acknowledgement of its liabilities and indebtedness to the plaintiff, requested the plaintiff to extend the
due date of payment of the sum of the said bills and on the basis of such
request, the plaintiff had extended due dates in respect of 5 bills as
mentioned in Paragraph 15 of the plaint. In spite of extending the due
dates of the said bills, the defendant No.1 expressed its inability to make
payment of the said 5 bills within the extended due dates thereof and
requested for further extension which the plaintiff had refused to grant.
The defendant No.1 has failed to make payment of the price of the
aforesaid consignments of tea in spite of having received the said
consignments without objection and having appropriated the same. The
plaintiff has examined one Mr. Sujit Bhattacharya being one of the
directors of the company. Mr. Bhattacharya in his evidence has
corroborated the statements made in the Plaint, in fact, the witness is
the person who has verified the Plaint. The said witness has produced
three sets of documents, namely, Invoice and Bill of Lading, an
application filed under Section 19 of the Recovery of Debts due to Banks
and Financial Institutions Act, 1983 and 14 bills of exchange. In respect
of some of the bills of exchange, the due date for making payment was
extended. The bills of exchanges would show that the defendant No.1
had accepted the said bills of exchange and in most of the bills of
exchange there are endorsement of Honkong and Sanghai Bank. The
plaintiff attempted to produce the original documents before the Court.
The HSBC of the Singapore Branch, however, has refused to produce the
original of the said documents on specious plea that they are not bound
to produce such documents before an Indian Court. The witness,
however, produced duplicate copies of the bills of exchanges and
submitted that a set of such documents have been given to the defendant
No.2 for being presented to the defendant No.1 for realization of the
amount covered under the said bills of exchange. Since the HSBC,
Singapore refused to produce the original, a subpoena was issued to the
defendant No.2 to produce copies of the 14 bills of exchanges drawn by
the plaintiff on the defendant No.1 consequent whereupon Mr. Kamal
Pal, Assistant Manager, Asset Recovery Management Branch appeared
and filed such documents. The witness of the plaintiff has duly identified
the said documents and submitted that these are the said bills of
exchange that have been exhibited earlier as Exhibit 'c' collectively. The
witness has categorically stated that these are the copies of the bills of
exchange that the plaintiff had submitted to the Indian Bank. The
Exhibit 'B', namely, an application filed by the bank before the Debt
Recovery Tribunal also refers to the same set of 14 bills of exchange
which were presented to the defendant No.1 through HSBC, Singapore
and it was due to such failure on the part of the defendant No.1 to make
payment even after the expiry of the due dates, such bills were presented
for payment on the defendant No.1 which were dishonoured by non -
payment by the said defendant No.1 upon presentation. The defendant
No.2 in the said proceeding had claimed US $676465.71 amounting to
Rs.3,01,16,540/ -;
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