Company ordered to pay petitioner Rs. 3,28,211.95, must settle within 4 weeks to avoid stay

The court found the company indebted to the petitioner for Rs. 3,28,211.95 despite the company's claim against the petitioner's associate concern. The court admitted the petition for the principal sum with interest and ordered the company to pay within four weeks to avoid a permanent stay. The remaining claim was deferred to a separate suit, with no costs awarded at this stage.

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Issues:
Claim for goods and services rendered as a sub-contractor by the petitioner against the company. Defense raised by the company regarding a substantial claim against petitioner's associate concern. Interpretation of the relationship between the petitioner and the company in terms of outstanding dues. Admissibility of the petitioner's claim against the company based on documentary evidence and admissions made by the company. Decision on the principal sum claimed by the petitioner and the subsequent legal actions to be taken.

Analysis:
The petitioner claimed a sum of Rs. 31,77,331/- from the company for goods delivered and services rendered as a sub-contractor for the railways. The company's defense was based on the assertion that the petitioner and another company were part of the same group, and the company had a substantial claim against the petitioner's associate concern. The company argued that the petitioner's claim was not substantiated by any admission made on behalf of the company.

The petitioner responded by stating that unless there was an express agreement regarding the collective viewing of dues between the parties, the company's claim against the petitioner's associate concern could not be set off against the petitioner's claim. However, a letter dated September 5, 2009, indicated that the petitioner had authority to deal with the issues between the company and the petitioner's associate concern, suggesting a link between the transactions.

Despite the company's admission of owing the petitioner a sum of Rs. 26,08,858/- and having a claim against the petitioner's associate concern, the court found an unequivocal admission by the company of being indebted to the petitioner in the sum of Rs. 3,28,211.95 when reconciling the figures. The court admitted CP No. 372 of 2012 for the principal sum of Rs. 3,28,211.95 with interest, and provided conditions for the petition to be permanently stayed upon payment by the company within four weeks. The balance claim of the petitioner was relegated to a suit, and no order as to costs was made at that stage.

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