Case Law Details
C.M. Smith And Sons. Ltd Vs State of Gujarat (Gujarat High Court)
Facts- The appellant is engaged in the business of production of Grey Cast Iron and Nodular Iron castings weighing from 5 Kgs to 150 Kgs and is also a supplier of fully finished parts to Original Equipment Manufacturers since the year 1956. The factory premises of applicant Company is located at Nadiad and it employs around 1500 workers. The respondent is a Partnership Firm registered under the provisions of the Indian Partnership Act and is engaged in the business of manufacture of Casting Parts. It also accepts orders and manufacturers casting parts as per requirements of different customers.
Both of them were in business relations for several years. However, due to certain defects in the products supplied by Respondent to the Applicant, the Company had to encounter returns from other industries and thereby suffered losses.
Respondent filed a summary suit against the Company for the recovery of INR 1,12,26,500 for the goods delivered as per the Applicant’s order.
The Civil Judge passed a decree in favour of the Respondent and directed the payment of the sum along with interest. Subsequently, the Applicant filed the First Appeal, wherein the Division Bench of the Gujarat HC granted interim relief but directed a deposit of INR 43,40,061 as security. The Company failed to make this deposit and consequently, Respondent No. 3 moved a Special Execution Petition at the civil court, as well. The Civil Judge issued a Warrant of Attachment against the Applicant-Company.
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