In Brief
Star Paper Mills sued Beharilal Madanlal Jaipuria Ltd. for non-payment of paper supplied as a wholesaler. The respondent denied the transactions as fictitious and fraudulent. The trial court decreed the suit; the High Court Division Bench set it aside, finding the appellant failed to prove registration as a dealer. The Supreme Court allowed the appeal, holding that the respondent had admitted the appellant's dealer status in the written statement and the burden of proving fictitious transactions lay on the respondent. Stamped and signed invoices and ST-1 Forms admitted by the respondent's own witness constituted sufficient proof without examining the document author. The High Court erred by raising new grounds not pleaded by the respondents. The suit was decreed for Rs. 96,41,765.31 with future interest."
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