2018 (12) TMI 1970

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....which is separately computed in Exhibit "N") and the outstanding dues (claimed in accordance with Exhibit "L" to the Plaint). 3. Briefly stated, the transactions between the parties ran thus. 4. It is not disputed even in the Affidavit in Reply to the Summons for Judgment that the parties did have, and indeed continue to have, business dealings. The 1st Defendant is a partnership firm that does business in ofset printing. Defendants Nos. 2 and 3 are partners of the 1st Defendant. The Plaintif periodically supplied diferent types of papers, cards and other material to the 1st Defendant. The business and commercial relationship was of considerable longevity and continued for over two decades. The 1st Defendant purchased art paper, bond pape....

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....nd, in default, threatened recovery proceedings. 5. There was a response to the legal notice and this is dated 23rd February 2017. A copy of this reply is at Exhibit "E" at page 39 to the Plaint. In paragraph 6, the Defendants said they were ready and willing to pay amounts in instalments between Rs.2 lakhs to Rs.5 lakhs per month. This is an unqualified commitment and on its own indicates an acceptance and admission of a liability. I will at this stage address the contention in regard to the balance confirmation of 31st August 2016 at Exhibit "C" page 36. The Defendant states that this document was issued for security purposes or, more specifically to enable the Plaintif to raise finance. That in itself is not credible. There is no such q....

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.... satisfaction of the claim under that bill. If no particular invoice is specified, the creditor is entitled to apply the payment to the earliest unpaid bill. This hardly admits of any dispute, especially in the commercial division of a High Court in the commercial capital of the country and I do not propose to spend any more time in addressing this. 7. There is then an argument that between the parties there was a running account. The fact that there were continuous transactions does not make it a running account. Again the concept of a running account in commercial practice is well-known. It must be demonstrated that there are debits and credits going on simultaneously or on a regular basis and that balances are struck with some periodici....

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....han computing interest from the date of invoice. The Defendants cannot demand that that claim be reduced even further by insisting on an interest-free credit period stretching into years on end for each invoice. 9. In the Affidavit in Reply the averment in paragraph 3(b) at page 16 is that because in the past the Defendants enjoyed 450 to 800 days of credit, therefore, the Defendants are entitled to this as a matter of right. The Plaintif's forbearance confers no right on the Defendants and it most certainly furnishes no tenable defence. In sub-paragraph (d), there is a denial of the Defendants' letter dated 31st August 2016 at least to this extent: that it contains an admission of liability. The execution of the document is not disputed. ....