Documentary acknowledgment and contractual due date supported the claim, while excessive interest was reduced to a reasonable rate.

Documentary acknowledgment of delivery and liability, including delivery challans, invoices and correspondence read with party conduct, was treated as sufficient material to support a summary claim. Limitation was computed from expiry of the contractual seven-day grace period after delivery, so a suit filed on the court opening day after vacation was within time. Although invoices stipulated interest at 19.5% for delayed payment, that rate was considered excessive in the circumstances and was reduced to 9% per annum for pendent lite and future interest, while the principal claim was maintained.

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Issues: Whether the suit was maintainable on the basis of acknowledgments and delivery documents; whether the claim was barred by limitation; and whether the contractual rate of interest should be restricted.

Issue (i): Whether the suit was maintainable on the basis of acknowledgments and delivery documents.

Analysis: The delivery chalan, invoices and related correspondence, read with the conduct of the parties, constituted sufficient material to show receipt of goods and acknowledgment of liability. In such circumstances, the suit could be proceeded with on a summary basis.

Conclusion: The suit was maintainable.

Issue (ii): Whether the claim was barred by limitation.

Analysis: The period of limitation was computed from the expiry of the agreed grace period of seven days from delivery. On that basis, the suit filed on the court opening day after the Christmas vacation was within the prescribed period.

Conclusion: The claim was not barred by limitation.

Issue (iii): Whether the contractual rate of interest should be restricted.

Analysis: Although the invoices provided for interest at 19.5% if payment was not made within seven days, the rate was considered excessive in the circumstances and was scaled down to a reasonable rate for pendent lite and future interest.

Conclusion: Interest was restricted to 9% per annum.

Final Conclusion: The plaintiffs were held entitled to a decree, with the principal claim maintained and interest moderated to 9% per annum.

Ratio Decidendi: Documentary acknowledgment of delivery and liability can sustain a summary claim, limitation runs from the contractual due date where a grace period is stipulated, and an excessive contractual rate of interest may be judicially moderated.

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