Plaintiff Failed to Prove Defective Goods Supplied - Claims Dismissed -Defendant’s Counter-Claim Upheld for Unpaid Invoices and Interest – Madras High Court

In a significant judgment by the Madras High Court, presided over by Hon’ble Mr. Justice Abdul Quddhose, the claims of the plaintiff, M/s. Kapoor Imaging Private Limited, for damages against the defendant, M/s. Kodak (India) Private Limited, were dismissed. The Court found the plaintiff’s claims for damages due to alleged defective goods supplied by the defendant to be unsubstantiated. Conversely, the defendant's counter-claim for unpaid invoices and interest was upheld.

The suit, initiated by the plaintiff, sought recovery of Rs.1,26,40,648/- for alleged damages resulting from defective goods supplied by the defendant. The plaintiff claimed that the goods had various defects, causing payments to be withheld by customers, unsold defective stocks, goods returned by customers, and additional costs like storage charges and non-issuance of E1 forms. The defendant refuted these claims and filed a counter-claim for unpaid invoices totaling Rs.58,00,686/-, plus interest.

The Court meticulously analyzed the claims, evidence, and contractual obligations under the Sale of Goods Act, 1930, and the Indian Contract Act. It observed, “The initial burden of proof is on the plaintiff to prove the suit claim. They have failed to discharge their initial burden in accordance with Section 101 of the Evidence Act.”

The Court further noted, “No evidence has been placed on record by the plaintiff to substantiate that the goods supplied by the defendant had suffered base fog or fingerprints.” It also highlighted the plaintiff’s failure to mitigate losses, a mandatory requirement under Section 73 of the Indian Contract Act.

Justice Quddhose remarked, “The suit claim, as stated supra, has to be rejected by this Court, since the plaintiff has not produced any evidence substantiating the said suit claim.”

The Court dismissed the plaintiff’s suit for being unsubstantiated and upheld the defendant’s counter-claim. It directed the plaintiff to pay the defendant Rs.58,00,686/- along with interest at 18% per annum from the date of the last invoice till realization. The judgment emphasized the importance of providing concrete evidence to substantiate claims in contractual disputes.

Date of Decision: 16.02.2024

Kapoor Imaging Private Limited Vs. Kodak (India) Private Limited