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| The Tax Publishers 2019 TaxPub(CL) 0535 (Cal-HC) CODE OF CIVIL PROCEDURE, 1908,
Section 26
Where plaintiff company filed civil suit against defendant for non-repayment of outstanding dues, however, defendant entered its appearance but chosen not to file any written statement, the suit was to be treated as an undefended suit and plaintiff company was entitled to get an ex-parte decree against defendant for the principal sum along with the interest till the date of payment.
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Institution of suits - Civil suit filed by plaintiff to claim outstanding dues - Undefended suit - Plaintiff entitled to get ex-parte decree against defendant in the suit
An agreement was reached between EMCL (plaintiff) and MH (defendant), whereby, MH was to supply 92,000 Metric Tonnes (MT) of Iron Ore fines to EMCL after the advance payment for the same was made. EMCL paid a sum of Rs. 15.66 crores to MH in lieu of the agreement, but EMCL received Iron Ore fines worth only Rs. 5.84 crores, thus, the supply of iron ore fines worth Rs. 8.82 crores remained outstanding. EMCL tried to approach MH on various occasions demanding the outstanding amount but MH never repaid the said amount to EMCL. Therefore, EMCL filed a civil suit against MH regarding the outstanding claim. Held: It was noted that MH through an e-mail acknowledged the sum due and also promised to refund an initial amount of Rs. 4.2 crores to EMCL. However, MH failed to pay the amount due to EMCL on various occasions, therefore, EMCL filed a civil suit with regard to the outstanding claim. MH had entered appearance but chosen not to file any written statement, thus, the suit was treated as an undefended suit and EMCL was entitled to get an ex-parte decree against MH for the principal sum along with the interest till the date of payment.
REFERRED :
FAVOUR : In favour of plaintiff
A.Y. :
IN THE CALCUTTA HIGH COURT
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