TCI Global vs M/s Synergy Freightways Pvt. Ltd.

Reva Khetrapal, J.—This is a suit for recovery of Rs. 79,28,779/- along with pendente lite and future interest @ 18% per annum filed by the plaintiff against the defendant. The plaintiff, a division of Transport Corporation of India Ltd, is a Global Logistics Company and is engaged in the business of transporting goods to various destinations in India and abroad for consideration. The plaintiff is also engaged in the business of freight forwarding for its customer''s clients on the rates agreed upon from time to time as per the prevailing market practice in the International Freight Forwarding Trade. The defendant is engaged in the business of facilitating transportation of goods from place to place for consideration. The defendant approached the plaintiff for supply and delivery of 40 feet high cube containers for shipment of raw material namely cotton from Mundra Port, Gujarat to Chittagong Port, Bangladesh. It was agreed between the parties that the same shall be supplied at the rate of USD 906 per 40 feet high cube container. It was further agreed that apart from basic freight of USD 906, Terminal Handling Charges (THC) of Rs. 8500/- per container and Bill of Lading Charges at the rate of Rs. 1000/- per container were to be added.

During the period from January 2009 to March 2009, the defendant required 170 containers of 40 feet high cube for stuffing its consignments for onward transportation to Bangladesh from Mundra Port. The plaintiff duly provided the containers and had them transported to the destination with the goods required to be delivered, at the agreed rate of USD 906 per 40 feet high cube. The plaintiff raised seventeen bills from time to time in respect of the transportation of the said 170 containers, details whereof are given in para 6 of the plaint.

The plaintiff was also maintaining a statement of account in the name of the defendant in the regular course of business with the bill amount being debited and the amounts paid by the defendant being credited to the said account, the last payment made being adjusted first against the longest outstanding bill. In the said statement of account as on 31st March, 2009, an amount of Rs. 54,30,671/- was outstanding in the name of the defendant. As per the terms of the invoice, interest @ 2% per month was chargeable if bills were not paid by the due date. No objection whatsoever was raised by the defendant throughout the period when the bills were being raised by the plaintiff and the consignments reached the destination as required by the defendant. However, once the entire consignment reached the destination and the defendant received its money from its customers, the intentions of the defendant turned dishonest and the defendant unilaterally determined the price of 40 feet high cube container at USD 476 instead of USD 906, in which respect the defendant concocted the debit notes stating the price as USD 476.

It is submitted that the plaintiff at no point of time had ever agreed for the rate of USD 476. The plaintiff itself buys containers at USD 900 and it makes no business sense at all to sell the said containers at half that price to the defendant. The fact that the rates for containers of 40 feet high cube from Mundra to Chittagong for the period under reference were in the price band of USD 876 to 906 was also well within the knowledge of the defendant.

The plaintiff alleges that despite numerous visits to the office of the defendant to request payment of the outstanding amount and despite legal notice dated 04.11.2009 demanding payment of the outstanding amount, no payment has been made by the defendant. Hence, the present suit has been filed by the plaintiff.

Summons of the suit were duly served on the defendant, who chose not to appear before the Court and was, in the circumstances, proceeded ex parte on 14.11.2011. The plaintiff has filed affidavit of Mr. U.K. Bhalla, Assistant Vice-President of Plaintiff Company, by way of ex parte evidence.

Mr. U.K. Bhalla, in his affidavit by way of evidence, exhibited as Ex. PW1/A, has reiterated the averments made in the plaint and proved on record Copy of Board Resolution dated 26.02.1999 and copy of Special Power of Attorney dated 25.04.2011 as Ex. PW1/1 and PW1/2 respectively; copy of Certificate of Incorporation of the Transport Corporation of India Ltd. dated 29.01.1999 as Ex. PW1/3; E-mail dated 20.11.2008 sent by the defendant to the plaintiff requesting the plaintiff to issue debit note at the rate of USD 906 for freight charges, INR 8500 as THC and INR 1000 as Bill of Lading charges as Ex. PW1/4; Bill No. GCRP/SF/00003 dated 30.11.2008 raised by the plaintiff on the defendant as Ex. PW1/5, which also contains the freight charges at the rate of USD 906; various bills raised by the plaintiff on the defendant from 24.01.2009 to 27.03.2009 as Ex. PW1/6 to PW1/22 and the reconciliation of defendant''s account with the plaintiff''s account as Ex. PW1/23; documents relating to the cost price of the plaintiff for the containers and the communications in this regard as Ex. PW. 1/24 to Ex. PW1/26 (subsequently marked as Mark A to Mark C); debit Notes fabricated by the defendant at the rate of USD 476 as Ex. PW1/27 to PW1/36; E-mail dated 2nd April, 2009 sent by the defendant to the plaintiff requesting the plaintiff to send the bills regarding shipment from Kandla/Mundra to Chittagong as Ex. PW1/37; copy of the legal notice dated 04.11.2009 sent by plaintiff to defendant as Ex. PW1/38 and proof of service along with A.D. Cards are Ex. PW1/39 to PW1/47.

I have heard the learned counsel for the plaintiff and perused the plaint and the accompanying documents. The plaintiff has proved the case set up by him in the plaint. The evidence, oral as well as documentary, of the plaintiff has gone unrebutted on record. Document Ex. PW1/23 shows the balance due to the plaintiff from the defendant as on 31.03.2009 was Rs. 54,30,671/- as the principal amount. The invoices proved on record, viz., Ex. PW1/6 to PW1/22, show that interest @ 2% per month was chargeable in the event payment was not made on the due date. The plaintiff is accordingly held entitled to Rs. 24,98,108/- being the interest till 28.02.2011 @ 24% per annum i.e in all Rs. 79,28,779/- (Rupees Seventy Nine Lacs Twenty Eight Thousand Seven Hundred and Seventy Nine Only) along with pendente lite and future interest @ 18% per annum from the date of filing of the suit till realization. The suit stands decreed in the above terms. Registry shall draw up a decree sheet accordingly. CS (OS) No. 1717/2011 stands disposed of accordingly.