Filing of suit

advmarcela (Querist) 03 February 2015 This query is : Resolved
Respected Sir/Madam

My client, an Engineering Contractor, office based in Mumbai had undertaken engineering contract work for a company in Goa. After completion of the work my client raised an Invoice for X amount, the company paid my client part payment of Y amount, now the balance due Z (X-Y) is still pending, and yet to be received by my client.

My client has a copy of Quotation, Work/Purchase Order, Invoice and part payment details. 3 Legal notices have already been sent to the company by my client, but due to their dilly dallying tactics there has been a sum of interest accrued on the Invoice amount (my client has charged 3.5% interest on the Invoice amount per month). The company in Goa replied to the notice in negative dated 22/07/2014.

On the Invoice raised by my client there is a Note/clause mentioned which read as "Subject to Mumbai jurisdiction only".

Therefore I would like to request your goodself to offer your kind and generous advise
:
1. Can a Work/Purchase Order be considered as an Agreement according to Indian Contract Act?
2. Under which Act and Section of Law the suit can be filed?
3. Does Goa court has jurisdiction to entertain the suit?
4. Interest rate on the balance due amount charged by my client is 3.5% per month, is it ok? Or should something other percentage be charged?
5. What is the time period in filing the suit, after the reply of the company in Goa dated 22/07/2014?

Thanks and regards

Adv. M. Mesta

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Devajyoti Barman (Expert) 03 February 2015
1. Yes
2.academic query.
3. No, only Mumbai court has jurisdiction.
4.it is ok.
5.3 years.

Rajendra K Goyal (Expert) 04 February 2015
1. Work order provisions need to be referred.
2. Academic query.
3. Suit to be filed in Mumbai.
4. You can mention. Court may not award demanded 42% interest.
5. 3 years from date of amount due.

advmarcela (Querist) 04 February 2015
And that in the above mentioned case the legal notices were filed under Company Act 1956. Which act do I refer in filing of the suit? Sir/Madam, Please do advise.

advmarcela (Querist) 04 February 2015
Heartful thanks to Madam Ms. Devajyoti Barman and Sir Mr. Rajendra Goyal for answering the queries.

ajay sethi (Expert) 04 February 2015
summary suit can be filed under order XXXVII of CPC . suit is in respect of goods sold and delivered and is based on written contract . suit has to be filed in Bombay only

advmarcela (Querist) 04 February 2015
Sir, its Engineering Contract works done by the client for the company in Goa. Can I file for Recovery of Money and damages?

advmarcela (Querist) 04 February 2015
Gratitude to Sir Mr. Ajay Sethi for your generous advice.

ajay sethi (Expert) 04 February 2015
thanks for your appreciation . summary suit is only for recovery of money not damages .

advmarcela (Querist) 04 February 2015
Thank you Sir once again.

T. Kalaiselvan, Advocate (Expert) 04 February 2015
Yes money recovery suit is the option before you and you can file the suit in Bombay. Take the help of your lawyer for further issues.