Delhi District Court Smc Comtrade Ltd vs G. Balasubramanian on 5 June, 2013 IN THE COURT OF MS.RICHA PARIHAR, CIVIL JUDGE­06 (CENTRAL), TIS HAZARI COURTS, DELHI CS no. 693/2010 Unique Case ID No. 02401C0270142010 In the matter of:­ SMC Comtrade Ltd. Formally SMC Complex Pvt. Ltd. (Through its A.R.) 11/6B, Shanti Chambers, Pusa Road, New Delhi­110005 .....PLAINTIFF VERSUS G. Balasubramanian H. No. 22/13, Ponmenipudur, st 1 Street, Alamelu Street, st 1 Floor, Arasarad, Madurai, Tamil Nadu, Pin­625016 ....DEFENDANT DATE OF INSTITUTION : 02/07/2010 DATE OF RESERVING JUDGMENT : 17/05/2013 DATE OF PRONOUNCEMENT : 05/06/2013 EX PARTE JUDGMENT : This is suit for recovery. Brief facts of the case are as follows: 1. Plaintiff, SMC Comtrade Ltd. is a limited company and registered under the provisions of the Companies Act, 1956. Plaintiff is a registered member of National Commodity and Derivatives Exchange Limited (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX) and deals in sale SMC Comtrade Ltd. vs. G. Balasubramanian CS­693/2010 1 OF 5 and purchase of various commodities listed in the Exchanges. That name and registered office of plaintiff company has changed from SMC Comex Pvt. Ltd to SMC Comtrade Pvt. Ltd. Plaintiff provides broking services to its clients. That trading executing in commodities in electronic mode based on VSAT, leased line, BPN, Combination of technologies and computer systems to place and orders. Any individual availing the services of plaintiff has to procure client registration form (CRF) comprising of applican'ts detail sheet known as Know Your Client Form, letter of authority risk disclosure document and the Member Constituent Agreement from the Head office of the plaintiff company or from any sub broker throughout India and fill up the form in the necessary facts and information. 2. According to plaintiff, the defendant filled up the CRF and made an offer to plaintiff company with a view of obtain its assent over the tendered offer and information that plaintiff after receipt of the offer document from the defendant, checked and verified all the documents fact and figures, credentials and tendered information at plaintiff's Corporate Office at Delhi thereby confirming and accepting the offer of defendant vide agreement dated 25/10/2008. On the execution of this agreement, plaintiff had allotted a Unique Client Code, MCB0199 to defendant and simultaneously same was uploaded in the respective commodity exchange. The UCC code allotted to defendant was used for all the purposes of business and identification of defendant. The defendant has executed various trades in his Unique Client Code, MCB0199 since the inception of trade relation with the plaintiff. 3. According to plaintiff, during the trading activities defendant used to buy and sell commodities by giving the initial margin of Rs. 25,000­ through the plaintiff and as per the agreed and established norm, the account is maintained by plaintiff. The defendant was executing the SMC Comtrade Ltd. vs. G. Balasubramanian CS­693/2010 2 OF 5 trade in MCX continuously since opening of his account and has given the payment on various occasions against the transactions and debit balance reflecting in their running account business. 4. That defendant admitting his liability has made payments on 04/11/2008 for Rs. 25,000/­ , 06/11/2008 for Rs. 25,000/­, 07/11/2008 for Rs. 25,000/­, on 11/11/2008 he had given two cheques for Rs. 25,000/­ and on 17/11/2008 for Rs. 50,000/­.He had also given two cheques for Rs. 25,000/­ on 21/11/2008 and on 31/12/2008 which were got dishonoured when deposited for encashment with bank. 5. That in due process of trades executed during the period from the date of opening of the account and after due computation of the defendant's account debit balance of Rs. 12,798/­ (Rupees twelve thousand seven hundred and ninety eight) has come forth on 08/05/2010. 6. That the plaintiff has made number of requests to the defendant to pay the debit balance and also got issued two demand notices on 25/07/2009 and 19/12/2009 to the defendant even after that the defendant did not turn up to clear the debit balance pending in hi