National Small Indust.Corpn.Ltd v. Balwinder Singh

V.B.GUPTA, J. rb

* HIGH COURT OF DELHI : NEW DELHI RFA No.486 of 2001 % Judgment reserved on: 22nd May, 2009 Judgment delivered on: 3rd July, 2009 National Small Industries Corp. Ltd. (A Government of India Enterprise) Having its Registered office at: "NSIC Bhawan" Okhla Industrial Estate, New Delhi-110 020 ….Appellant Through: Mr. Sanat Kumar, Adv. Versus Sh. Balwinder Singh S/o. Sh. Puran Singh, Sole Proprietor of M/s. Dashmesh Oil Mills, Village & P.O. Wadala Viram, District Amritsar, Punjab. …Respondent. Through: None. Coram: HON'BLE MR. JUSTICE V.B. GUPTA 1. Whether the Reporters of local papers may be allowed to see the judgment? Yes 2. To be referred to Reporter or not? Yes 3. Whether the judgment should be reported in the Digest? Yes V.B.Gupta, J. This appeal has been filed against the judgment and decree dated 17th March, 2001 passed by Additional District Judge, Delhi, vide which the suit of the appellant for recovery and possession of the machines, was partly decreed. 2. Brief facts are that, appellant supplied certain machines to defendant on Hire Purchase basis. Respondent agreed to pay the total Hire Purchase value of machines fixed under the agreement at Rs. 1,73,477/-. Respondent deposited a sum of Rs.13,500/- as earnest money and agreed to pay the balance amount of Rs.1,59,977/- by way of thirteen half-yearly installments. However, respondent did not keep his commitment. When appellant deputed a team to visit the premises of the respondent, it was found that respondent had disposed of machines in breach of Hire Purchase agreement. Appellant lodged an F.I.R. against respondent. However, respondent acknowledged his liability from time to time and the last acknowledgment was made by him on 25th June, 1995. As per the books of accounts maintained by the appellant, a sum of Rs.2,33,988/- became due and payable as on 28th February, 1997. In addition, the appellant is also entitled to interest @ 17% p.a. w.e.f. 28th February, 1997. The appellant is also entitled to the custody and possession of the machines which are the subject matter of the agreement. It was also prayed that respondent be directed to restore the machines or in the alternative pay a sum of Rs.43,370/ being the residual values of said machines. 3. Respondent was duly served by publication but did not appear and as such vide order dated 27th September, 1999 passed by the trial court, he was proceeded ex-parte. 4. Vide impugned judgment, suit of the appellant was partly decreed for a sum of Rs.58,000/- with proportionate costs and respondent was also held liable to pay interest on this amount @ 17% per annum w.e.f 25th June, 1995 till date. 5. It is contended by learned counsel for the appellant that the hire purchase period was to be over on 1st July, 1995, when the last installment of hire money was payable by the respondent. During the continuation of the hire purchase period, respondent vide his letter dated 5th March, 1994 (Exb-PW 1/15) acknowledged and accepted his liability towards the appellant and assured to pay a sum of Rs.85,000/- in three installments, within the period of six months. Thereafter, respondent vide letter dated 22nd February, 1995 (Exb.- PW 1/16) again acknowledged and accepted his liability. Thereafter, respondent once again vide his letter dated 25th June, 1995 (Exb.-PW 1/17) promised to pay a sum of Rs.58,000/- within a period of two months. 6. It is contended that all these letters were written by the respondent during the continuation of hire purchase period, as the hire purchase period was to be over on 1st July, 1995. The appellant filed the suit on 5th June, 1998 and thus the suit of the appellant could not have been held to be barred by limitation and the entire suit ought to have been decreed. 7. It is also contended that in terms of the hire purchase agreement (Exb-PW 1/2), the appellant is entitled to the custody and possession of the machines which are the subject matter of the above said agreement. The machines in question are th