1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL JURISDICTION SUMMARY SUIT NO. 2801 OF 2007 Novartis India Limited. .... Plaintiff. V/s. M/s. Shree Agencies & Anr. .... Defendants. ....... Mr. Ajit N. Makhijani i/b. M.M. Legal Associates for the Plaintiff. None for the Defendants. ........ CORAM : DR. D.Y. CHANDRACHUD, J. 26TH MARCH 2008. P.C. :- The suit under Order XXXVII of the Code of Civil Procedure, 1908 has been instituted for the recovery of an amount of Rs.4,08,000/- together with interest from the due date until the date of the institution of the suit and thereafter until payment or realisation. The Defendants were appointed as a distributor by the Plaintiff by an agreement dated 12th March 2001. The agreement was thereafter renewed. The Plaintiff supplied and delivered its products to 2 the Defendants and under an agreement, the Defendants were to collect payments and remit the amounts so collected to the Plaintiff. As on May 2003, an amount of Rs. 5,57,728.26 was due and payable by the Defendants to the Plaintiff. A letter of demand was addressed on 3rd November 2003. Eventually, an agreement was entered into between the parties on 13th February 2004 wherein the Defendants admitted that an amount of Rs.5,58,000/- was due and payable to the Plaintiff. The agreement recorded the manner in which the dues would be repaid. In pursuance of the agreement, the Defendants paid an amount of Rs.1,50,000/-, the last payment being received on 23rd September 2004. Thereafter, no further payments have been made. An Advocate's notice was addressed on 1st February 2006. In a reply dated 22nd February 2006, the Defendants have sought to excuse the liability on the ground that some payments were due and payable by an independent company. In a letter dated 26th April 2006, the Plaintiff' s Advocate clarified that the claim which the Defendants stated that they had was against the Novartis Health Care Pvt. Ltd. and not of the Plaintiff which is a separate legal entity. The suit has accordingly been instituted. 3 The Defendants have been served with the writ of summons but have failed to enter appearance. In terms of the provisions of Order XXXVII Rule 2(3) of the Code of Civil Procedure, 1908, the Plaintiff would be entitled to a decree as prayed upon the failure of the Defendants to enter appearance. A compilation of the original documents has been placed on the record. The claim arises under the written contract. The suit is within limitation. The Defendants have clearly acknowledged their liability in the agreement which was executed on 13th February 2004. Thought a part payment of Rs.1,50,000/- was made in pursuance thereof, there has been a default in the payment of the balance. The suit shall accordingly stand decreed as prayed. The Plaintiff would be entitled to interest at the rate of 9% per annum on the principal sum from the date of the institution of the suit until payment or realization. Refund of Court fees, if any, as per rules. 4