Delhi District Court Abhishek Gupta vs Sh. Shanta Bhansali on 21 December, 2024 IN THE COURT OF SH. AJAY PANDEY DISTRICT JUDGE (COMMERCIAL COURT10) CENTRAL, TIS HAZARI COURTS, DELHI CS Comm 427/2024 Abhishek Gupta S/O. Sh. Satbir Gupta, Proprietor of: M/S. Ashley India Innovations Having its Administrative Office at: A754, Shastri Nagar, Delhi110052 Plaintiff Vs Sh. Shanta Bhansali, Proprietor of: M/S. Shanta Exports 1) E281, B&C, M.I.A. Basni Jodhpur, Rajasthan342001 2) F389, Basni Gali No.6 2nd Phase, Jodhpur, Rajasthan342005 Date: June 06, 2024 Place: New Delhi Defendants Date of Institution : 03.04.2024 Date of Arguments : 21.12.2024 Date of Judgment : 21.12.2024 JUDGMENT UNDER ORDER XXXVII RULE 2 (3) IN COMMERCIAL SUIT UNDER ORDER XXXVII OF CODE OF CIVIL PROCEDURE, 1908 FOR RECOVERY OF RS.7,29,190/ (RUPEES SEVEN LAKHS TWENTY NINE THOUSAND ONE HUNDRED NINETY) ALONG WITH Sh.Abhishek Gupta Vs Sh. Shanta Bhansali Page no. 1 of 5 CS Comm 427/24 PENDENTE LITE AND FUTURE INTEREST @ 20.25% P.A. COMPOUNDING ON MONTHLY RESTS UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED ACT, 2006) 1. The Plaintiff filed the present suit under order XXXVII of The Code of Civil Procedure, stating inter alia that he is proprietor of M/s Ashley India Innovations engaged in the business of manufacturing and selling of paints, wood coatings, lacquers, thinners and other allied products. Plaintiff is also a registered micro/small enterprise within the meaning of Micro Small Medium Enterprises Development Act, 2006 (for short MSMED) vide UDYAMDL060042566. 2. Defendant approached the plaintiff representing him as proprietor of the firm M/s Shanti Exports responsible for day to day affairs of the said firm. He further stood as guarantor and personally liable for discharge of liability of the said firm. Plaintiff supplied goods to the defendant through the invoices as detailed in para no.5 of the plaint for an amount of Rs.3,76,546/. Defendant duly acknowledged the delivery of goods by the carrier to the defendant through GR receipts and GST invoices and input credit of said GST invoices have already been taken by the defendant. Thus, the acceptance of delivery of goods and the invoices in respect thereof by the defendant are to be treated as a Sh.Abhishek Gupta Vs Sh. Shanta Bhansali Page no. 2 of 5 CS Comm 427/24 written contract within the meaning of Order XXXVII Rule 1 (2) of The Code Of Civil Procedure 1908 (for short CPC). Plaintiff has also based his claim and liability of the defendant on his personal guarantee as well as enactment i.e. MSMED Act 2006. Defendant did not made the payment. Plaintiff issued legal notice dated 05.01.2023 through registered AD/Speed Post. Defendant neither replied nor complied the legal notice. Plaintiff initiated preinstitution mediation proceedings under section 12A of The Commercial Courts Act 2015 but to no avail. A sum of Rs.7,29,190/ including statutory compound interest @ 20.25% (three times of bank rate notified by RBI) with monthly rests under section 16 of The MSMED Act 2006 for delayed payment from the due date till the date of institution of the present suit is stated to be due from the defendant to the plaintiff. Hence, the present suit seeking recovery of the sum of Rs.7,29,190/ (Rupees seven lakhs twenty nine thousand one hundred ninety only) with pendentelite and future interest @ 20.25 % per annum compounded on monthly rests. 3. Summons of the suit in prescribed format as per Appendix B Form 4 under order XXXVII Rule 2 of the CPC were duly served upon the defendant through whatsapp on 05.11.2024 as per rules. 4. Despite service of summons no appearance has been filed by the defendant till date. Plaintiff is thus Sh.Abhishek Gupta Vs Sh. Shanta Bhansali Page no. 3 of 5 CS Comm 427/24 entitled to a decree under subrule 3 of Rule 2 of Order XXXVII. 5. Learned Sh. Brijesh Gupta, has drawn attention of the court to section 16 of MSMED Act 2006 which provide that if a buyer fails to make payment of the price