Case Law Details
PVR Ltd Vs Proetus Ventures LLP (Bombay High Court)
Conclusion: In present facts of the case, the Hon’ble Bombay High Court have held that Section 27 (3) expressly states that an obligation of a limited liability partnership, whether arising in contract or otherwise, shall be solely the obligation of the limited liability partnership. It is not in dispute that the present suit is a Summary Suit based upon invoices issued in the name of Defendant No. 1 and nothing else and the said invoices were the written contract between the Parties. Given this, the provisions of Section 27 (3) of the LLP act will squarely apply in present facts of the case.
Facts: The Plaintiff is a Company, which operates various multiplexes across the Country. Defendant No.1 is a Limited Liability Partnership Firm and Defendant Nos. 2 and 3 are the partners of Defendant No.1. Defendant No.1 had between December 2019 and February 2020 placed various purchase orders on the Plaintiff for the screening of certain promotional content/material, which the Defendants wanted to have screened in the Plaintiff’s multiplexes. The Plaintiff would after the promotional material/content was screened, raise invoices against the said work done. The first purchase order was received by the Plaintiff vide the Defendants’ covering letter/e-mail of the same date. Though having received the tax invoices the Defendants admittedly did not point out any discrepancy in respect of any of the said invoices. Despite repeated follow-ups and reminders, the Defendants failed and neglected to make payment of the amounts due and payable under the said in voice. It was thus that the Plaintiff addressed a legal notice dated 14th August 2020 to the Defendants calling upon the Defendants to make payment of the sum of Rs.1,13,06,080/- along with interest at the rate of 20% compounded annually.
The Plaintiff thereafter in terms of Section 12A of the Commercial Courts Act, 2015 instituted mediation. The mediation however did not prove fruitful.
It was submitted by the Plaintiff that the Defendants were bound and liable to make payment in terms of the said invoices to the Plaintiff. and a Summary Suit based on invoices was maintainable. In support of his contention that an invoice had been construed to be a written contract upon which a Summary Suit would lie, he placed reliance upon a judgment of this Court in the case of Jatin Koticha Vs. VFC Industries Pvt. Ltd.
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