TaxTMI 
TaxTMI 
TaxTMI 
2018 (3) TMI 558
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....ndant in terms of the aforesaid agreement dated 6.5.2013. 4. The facts of the case are that plaintiff has pleaded in the suit that the defendant as a sole proprietor of M/s Sai Sales approached the plaintiff for a franchisee agreement to be entered into between the parties for the plaintiff to supply to the defendant shoes and other sports apparels of Reebok brand. In terms of business arrangement between the parties plaintiff supplied goods to the defendant. Defendant was to supply the C-Forms to the plaintiff in addition to the price of the goods purchased by the defendant from the plaintiff. 5. Plaintiff discontinued the existing business model and offered an alternative business model to the defendant after 30.11.2012, but this was not suitable to the defendant, and therefore the business relationship between the parties stood terminated on 30.11.2012. 6. Parties on 6.5.2013 entered into a full and final settlement agreement whereby in terms of this agreement dated 6.5.2013 the defendant agreed to pay a sum of Rs. 1,30,00,000/- to the plaintiff in full and final satisfaction of the dues of the plaintiff. The defendant also agreed to provide the C-Forms under the Central Sale....
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....stated of the sum of Rs. 38,45,961/- and which amount the plaintiff claims to have paid as the sales tax dues to the appropriate authority on account of failure of the defendant to supply the C-Forms. In this regard, it is an undisputed position that in terms of Clause 8 of the agreement dated 6.5.2013 the defendant undertook to supply the necessary C-Forms to the plaintiff. This Clause 8 reads as under:- "(8) Notwithstanding anything contained in this Agreement, the Franchisee agrees that in the event the Franchisee fails, or has failed, to submit Form-C for any period, the Franchisee shall be liable to pay RIC for the differential sales tax/VAT along with the interest, penalties or other loss incurred by RIC on account of the same." 10. Therefore, it is clear that there was a liability upon the defendant to supply the plaintiff with the necessary C-Forms and failing which the defendant will be liable to pay the differential sales tax. Admittedly the defendant has not supplied the C-Forms to the plaintiff. It is also relevant to note that the defendant in the leave to defend application has not at any place denied that the liability which has been fastened upon the plaintiff an....
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....ars the stocks with it, are arguments which the defendant is legally barred from raising and are therefore rejected. 12. The last ground which is urged before this Court on behalf of the defendant is that suit is barred because the agreement in question is dated 6.5.2013 and the subject suit has been filed on 30.5.2016. This argument of the defendant of the suit being barred by time is again a completely frivolous and vexatious argument because a suit for recovery has to be filed within three years when the amount is payable as per the dates of payments fixed by the agreement dated 6.5.2013. If amounts are payable not on the date of entering into of the agreement dated 6.5.2013, but on future dates, then it is only on the future dates when the amounts are not paid would the cause of action accrue to the plaintiff for alleging non-performance of the terms of the agreement dated 6.5.2013. In para 2 of the agreement dated 6.5.2013 the liability to be cleared by the defendant is in terms of the various cheques which start from 31.5.2013 with the other cheques being dated 30.6.2013, 31.7.2013 and 31.8.2013. The liability of the defendant in favour of the plaintiff would have arisen onl....
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....39;s good faith, or the genuineness of the triable issues, the trial judge may impose conditions both as to time or mode of trial, as well as payment into court or furnishing security. Care must be taken to see that the object of the provisions to assist expeditious disposal of commercial causes is not defeated. Care must also be taken to see that such triable issues are not shut out by unduly severe orders as to deposit or security. 17.4 If the Defendant raises a defence which is plausible but improbable, the trial Judge may impose conditions as to time or mode of trial, as well as payment into court, or furnishing security. As such a defence does not raise triable issues, conditions as to deposit or security or both can extend to the entire principal sum together with such interest as the court feels the justice of the case requires. 17.5 If the Defendant has no substantial defence and/or raises no genuine triable issues, and the court finds such defence to be frivolous or vexatious, then leave to defend the suit shall be refused, and the Plaintiff is entitled to judgment forthwith. 17.6 If any part of the amount claimed by the Plaintiff is admitted by the Defendant to be due ....