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Bangalore District Court

Synergy Computer Education vs Bruhat Bangalore Mahangara on 17 March, 2017

Form No.9
(Civil) Title
 Sheet for
 Judgment
  in Suits
  R.P. 91
                PRESENT: SRI S.H.HOSAGOUDAR,
                                           B.Sc.,LL.B.,[Spl]
                         XXVII Additional City Civil Judge.

                 Dated this the 17th day of March 2017



       PLAINTIFF:              Synergy Computer Education
                               A proprietary concern,
                               No.1660, 16th Main, 18th Cross,
                               Vijayanagar, Bangalore-560 040
                               Represented by its Proprietrix
                               Smt. Vasundara A.G.K.
                               Aged 40 years,
                               W/o N.H.Amba Prasad,
                               D/o G.Krishnappa,
                               R/at No.1660, 16th Main,
                               18th Cross, Vijayanagar,
                               Bangalore-560 040.

                         [By Sri Vivekananda.T.P. Advocate]

                              /v e r s u s/

       DEFENDANT:               Bruhat Bangalore Mahangara
                                Palike, N.R.Square,
                                Bangalore-560 002.

                                Represented by its Commissioner.


                              [By Sri HSS, Advocate]

       Date of institution of the :           6/6/2014
       suit
 2                       CT0028_O.S._4167_2014_Judgment_

Nature of the suit         :  For recovery of money
Date of commencement of :          21/11/2015
recording of the evidence
Date    on    which    the :       17/3/2017
Judgment               was
pronounced.
                           : Year/s Month/s Day/s
Total duration
                               2        9        11

                                            (S.H. Hosagoudar)
                                           XXVII ACCJ: B'LORE.




     Plaintiff      filed     this      suit    against     defendant

directing     the      defendant         to     pay     a       sum    of

Rs.51,39,526/- along with interest pendentelite; and

cost of the suit.

      2.    In brief, the plaintiff's case is as under:

     The plaintiff is a proprietor concern carrying on

the business in imparting computer education. On

coming to know of the fact that education and social

justice Standing Committee of defendant has resolved

to   provide     computer         education        to     the    SC/ST

Backward         Classes        and       Minority        unemployed

candidates,      the        plaintiff     has     approached          the
 3                  CT0028_O.S._4167_2014_Judgment_

defendant with the proposal of setting up computer

training centre at concessional rate.       Accordingly,

defendant has entered into separate agreement in

respect of each of wards with the plaintiff for providing

computer training to the scheduled caste / scheduled

tribe, backward    class   and   minority   unemployed

candidates identified by the defendant at various

wards in Bangalore for different period.

     As per terms of agreement, the plaintiff has

procured necessary computers and other related

accessories infrastructure to set up the computer

training centre and defendant has met only 50% of the

cost of expenses towards setting up of computer

training centres as per terms of contract.           The

defendant has agreed to pay Rs.3,500/- in respect of

each training and out of Rs.3,500/- the defendant was

required to pay 50% of the training fees immediately

on commencement of training and remaining 50%

after satisfactory completion of training. As per terms

of contract, after expiry of the contract, the computer
 4                   CT0028_O.S._4167_2014_Judgment_

hardwares licensed software and other infrastructure

and accessories shall be disposed off by public

auction and proceeds of the sale would be shared

equally between the defendant and plaintiff.

     It   is   submitted   that   plaintiff   has   trained

candidates identified and disputed by the defendant to

the satisfaction of the candidates, the officials of the

defendant and Corporators of the respective wards.

The plaintiff used to raise the bills for the payment of

training fee after completion of training of each of the

batch approximately once in six months during the

period of training and for the balance payment,

plaintiff used to raise the bill after conclusion of the

training. The defendant also honour the bills as and

when it was submitted until somebody giving false

complaints against the officials of the defendant to the

Lokayukta falsely alleging irregularities in the matter

of setting up of computer training centres, identifying

the trainees, purchase of computers, hardware and

software etc., Pursuant to the false complaints, the
 5                     CT0028_O.S._4167_2014_Judgment_

then Commissioner of the defendant ordered for an

enquiry on 26.11.2008 to be conducted by BMTF into

the allegations. Accordingly, BMTF conducted detailed

enquiry in the matter. In report submitted by BMTF it

has been reported that in so far as Synergy Computer

Education       is    concerned,        Bruhat   Bengaluru

Mahanagara Palike has provided capital of 59.99

lakhs and has started 14 Training Centres. In respect

of 14 Centres, had received Rs. 5,59,14,250/- as a

tuition fee upto 31.3.2008 and total outstanding dues

payable by Bruhat Bengaluru Mahanagara Palike in

Rs.1,06,87,250/-.

       It is also reported that, when surprise inspection

was made to this computer training centre, each

training centre had 10 computers, UPS Server and

Computer      Room,        Teaching   Room,   Office    Room,

partition and electric connection and other facilities

and training was going on at the time of surprise

check. From the report submitted by BMTF, it is clear

that    plaintiff    has     imparted    computer      training
 6                    CT0028_O.S._4167_2014_Judgment_

satisfactorily and then the then Commissioner of the

defendant     on   being   satisfied   that   there   is   no

irregularity in the matter of entering into agreement

for computer training directed release of the training

fee. However, on the basis of the false complaint, the

payment has been withheld. As on the date of

completion of the training period, the plaintiff was

entitled to the balance of computer training fees and

defendant was required to make payment of the same.

     It is submitted that as on the date of completion

of training   period as per agreement, defendant was

due in a sum of Rs.1,06,87,250/- in respect of M/s

Synergy Computer Education to the plaintiff. The said

amount has not been paid to plaintiff immediately

after completion of training. Even after order passed

by the then Commissioner for making payment of the

computer training fees, these payments have not been

made.

     Thereafter plaintiff had filed W.P.No.9750/2012

before Hon'ble High Court of Karnataka. The Hon'ble
 7                  CT0028_O.S._4167_2014_Judgment_

High Court of Karnataka on the submission made on

behalf of plaintiff and defendant disposed off the Writ

Petition by order dated 17.7.2012 with a direction of

considering the representation of the plaintiff. In

pursuant to the order passed by the Hon'ble High

Court of Karnataka, the       then Commissioner of

defendant by order dated 19.2.2013 ordered payment

of computer training fees to the plaintiff. Even after

the said order, payments have not been made.

Thereafter, plaintiff was constrained to file another

Writ Petition No.17572/2013 before Hon'ble High

Court of Karnataka. The Hon'ble High Court of

Karnataka by order dated 4.6.2013 directed the

defendant   to   implement   the   office   order   dated

19.2.2013 within six weeks. Inspite of the said

direction, payment has not been made and not given

effect to the office order dated 19.2.2013. Then

plaintiff filed contempt proceedings before Hon'ble

High Court of Karnataka. At that junction, balance of

computer training fees has been made to the plaintiff.
 8                   CT0028_O.S._4167_2014_Judgment_

     It is submitted that at the time of receiving the

payment of amount, the plaintiff has accepted the

payment without prejudice to his right to claim

interest for the belated payment. In view of the fact

that plaintiff was denied of receiving the payment

immediately after completion of training, the plaintiff

is entitled for payment of interest for the belated

period. The plaintiff is entitled to claim interest at the

rate of 9% per annum and plaintiff is entitled for a

sum of Rs.47,44,033 being the interest for the belated

payment as on the date when defendant made

payment of computer training fees.

     Inspite of the several requests made and notices

issued, the defendant has not made the payment of

interest for the belated payment of computer training

fees. Thereafter plaintiff got issued statutory notice

under    Section    482    of    Karnataka     Municipal

Corporation Act, 1976 calling upon the defendant to

pay interest in a sum of Rs.47,44,033/- within two

months from the date of receipt of the notice, failing
 9                   CT0028_O.S._4167_2014_Judgment_

which plaintiff would institute a suit for recovery of

the said amount. Inspite of notice defendant has not

paid the interest as claimed by the plaintiff. Hence

this suit.

     3.      In response to the suit summons issued by

the Court, defendant appeared through his counsel

and filed written statement. In brief the contents of

the written statement filed by the defendant are as

under:

     The suit of the plaintiff is false, frivolous and

same is not maintainable either in law or on facts. It is

true that plaintiff was entrusted the job of training in

the computer education to the unemployed candidates

of SC/ST Backward classes, Minority as a pilot

projects. The plaintiff has not sold the materials by

public auction and pays the 50% of the sale

proceedings though imparting the training is over, the

plaintiff has utterly failed to implement the sale of

proceedings after training is over. Hence defendant is

entitled to 50% of the sale proceedings. It is false to
 10                  CT0028_O.S._4167_2014_Judgment_

contend that as on the date of completion of training

of the employees as per agreement, the plaintiff was

entitled to Rs.1,06,87,250/- and out of which sum of

Rs.30,85,200/- is paid to the plaintiff on 31.3.2008 as

representing half of the contract amount at the time of

completion of the contract. Hence amount was

payable    was      only   Rs.30,85,250/-   and       not

Rs.1,06,87,250/- as contended by the plaintiff. The

plaintiff is not entitled for the interest as claimed.

There was no contract to pay interest and interest

claimed at 9% is excessive in nature and at the most

only claimed at 6% interest.      On the other hand

plaintiff is liable to pay 50% of the amount of the

value of the computer and its peripherals along with

interest. There is no cause of action for the suit. The

plaintiff is not entitled for any grounds. On these

grounds, defendant prays for dismissal of the suit.

     4    On the basis of the above pleadings of the

parties, my predecessor in office has framed the

following issues:
 11                  CT0028_O.S._4167_2014_Judgment_

           (1)   Whether the plaintiff proves
                 that defendant is liable to pay
                 Rs.51,39,526/- to the plaintiff?

           (2)   Whether the plaintiff is entitled
                 for the relief sought for in the
                 suit?

           (3)   What order or decree?


     5.    Thereafter the plaintiff concern in order to

prove its case examined its proprietrix as PW.1 and

got marked Ex.P1 to Ex.P83 documents and closed its

side of evidence. On the other hand, defendant

examined its Assistant Revenue Officer as DW.1 and

not got marked any documents on its behalf.

     6.    Heard the arguments on both sides and

perused entire records of the case.

     7.    My findings on the above issues are as

under:

     Issue No. 1) ............ Partly in the affirmative;
     Issue No. 2) ............ Partly in the affirmative;
     Issue No. 3) ............ As per final order for
                               the following:
 12                 CT0028_O.S._4167_2014_Judgment_




     8.   ISSUE NO.1: Plaintiff filed this suit against

defendant for recovery of sum of Rs.51,39,526/-

towards interest on the delayed payment.


     9.   In this case defendant appeared through

his counsel and filed written statement denying the

case of plaintiff. Defendant contended that since

plaintiff had not carried out the project and plaintiff

has not conducted classes in a proper manner and no

coaching was done as per terms of contract and

entrustment of work to the plaintiff is without inviting

tender and hence defendant is not liable to pay any

amount claimed by the plaintiff.


     10. Defendant further contended that since

there is no contract between plaintiff and defendant

with regard to the payment of interest for the delayed

payment and hence defendant is not liable to pay any

amount to the plaintiff.
 13                 CT0028_O.S._4167_2014_Judgment_

     11. In this case proprietrix of plaintiff examined

as PW.1. She filed affidavit evidence in lieu of her

examination-in-chief. In her examination-in-chief, she

reiterated the plaint averments. She produced in all

83 documents which are marked as Ex.P1 to Ex.P83.

In the cross-examination, she denied that plaintiff is

not liable to pay suit claim amount.


     12. In this case defendant got examined its

Assistant Revenue Officer as DW.1. He filed affidavit

evidence in lieu of his examination-in-chief. In his

examination-in-chief, he reiterated the contention

taken in the written statement. DW.1 has not

produced any documents. In the cross-examination,

he admitted that plaintiff had done his work as per

project. He further admitted that after enquiry, it was

held by BMTF, Lokayukta and enquiry officer that

there was no fault on the part of the plaintiff and in

the said enquiry reports, it is mentioned that as per

contract plaintiff has imparted the computer training
 14                    CT0028_O.S._4167_2014_Judgment_

to   the   candidates       sent    by     Bruhat    Bengaluru

Mahanagara Palike.


     13. I have perused entire evidence on record. It

is an admitted fact that plaintiff is a proprietary

concern carrying on the             business       in imparting

computer education. It is also admitted fact that

defendant has entered into separate agreements in

respect of each of the wards with the plaintiff for

providing computer training to the SC/ST Backward

Class and Minority unemployed candidates identified

by defendant.


     14. It is also admitted fact that as per terms of

agreement,      plaintiff     has        procured     necessary

computers       and         other        related     accessories

infrastructure to set up the computer training centre.

DW.1 in his cross-examination clearly admitted that

work was entrusted to the plaintiff under Pilot Project

scheme and plaintiff had done his work as per

contract. He further admitted that after completion of
 15                       CT0028_O.S._4167_2014_Judgment_

the work entrusted to the plaintiff, defendant has to

finalise the bills submitted by the plaintiff. Hence from

the evidence on record it is much clear that work was

entrusted to the plaintiff by the defendant under pilot

project scheme and as per agreement, plaintiff had

done his work.


      15. It is also not in dispute that in the year

2009,     Bruhat         Bengaluru      Mahanagara      Palike

Commissioner has passed an order to make payments

to the plaintiff if bill submitted by the plaintiff are

genuine. It is also admitted fact that defendant has

not made payment even after order passed by the

Commissioner        of    Bruhat   Bengaluru     Mahanagara

Palike. Defendant contended that since there was a

complaint     against       plaintiff   before   BMTF     and

Lokayukta and hence they have not made payments

to the plaintiff.


      16. It is also admitted fact that after enquiry it

was held by BMTF, Lokayukta and enquiry officer that
 16                 CT0028_O.S._4167_2014_Judgment_

there was no fault on the part of plaintiff. It is also

admitted fact that in the said enquiry reports, it is

mentioned that as per contract, plaintiff has imparted

the computer training to the candidates sent by

Bruhat Bengaluru Mahanagara Palike. In the enquiry

report, it is also stated that the students who are

contacted at the address given by them have testified

that they have been given free training and no amount

has been collected from them.


     17. DW.1 also in his cross-examination clearly

admitted that after enquiry, it was held by BMTF,

Lokayukta and enquiry officer that there was no fault

on the part of plaintiff and in the said enquiry reports,

it is mentioned that as per contract, plaintiff has

imparted the computer training to the candidates sent

by the Bruhat Bengaluru Mahanagara Palike. Hence

from the evidence on record it is much clear that as

per enquiry reports, there was no fault on the part of

the plaintiff and as per contract, the plaintiff has
 17                    CT0028_O.S._4167_2014_Judgment_

imparted computer training to the candidates sent by

Bruhat Bengaluru Mahanagara Palike. Hence it is the

duty of the defendant to make payment to the plaintiff

as per agreement. But evidence on record clearly

shows that defendant has not made payment to the

plaintiff even though plaintiff submitted the bill. It is

also admitted fact that in the year 2009, the then

Commissioner     of    Bruhat    Bengaluru    Mahanagara

Palike has passed an order to make payment to the

plaintiff, but inspite of the order passed by the then

Commissioner     of    Bruhat    Bengaluru    Mahanagara

Palike, defendant has not made payment.


     18. In this case, plaintiff produced enquiry

report given by BMTF. In the said report, it is clearly

mentioned    that     training   has   been    conducted

satisfactorily and after satisfying that there are no

sufficient valid grounds for withholding the payment

and further taking note of the direction of Hon'ble

Minister directing the Bruhat Bengaluru Mahanagara
 18                   CT0028_O.S._4167_2014_Judgment_

Palike to release payment based on report of the

BMTF, payment may be released. Hence from the

report submitted by BMTF, it is much clear that

plaintiff had done his work as per contract and after

completion of work entrusted to the plaintiff, Bruhat

Bengaluru Mahanagara Palike has to finalise bill

submitted by the plaintiff. But even though there was

no fault on the part of the plaintiff and even the then

Commissioner    of    Bruhat   Bengaluru   Mahanagara

Palike has passed order to make payment, but

defendant authority without any valid grounds has

withheld the payments.


     19. In this case evidence on record clearly

shows that as on the date of completion of training

period as per agreement, the defendant was due in a

sum of Rs.1,06,87,250/- to the plaintiff. Further

evidence on record clearly shows that above said

amount has not been paid to the plaintiff immediately

after completion of training. Further evidence on
 19                        CT0028_O.S._4167_2014_Judgment_

record    clearly     shows        that    plaintiff     has   given

representation to make payments. Further evidence

on record clearly shows that on the basis of the

representation       given    by     the    plaintiff,    defendant

obtained legal opinion on 26.6.2010. In this case

plaintiff has produced said legal opinion obtained by

the Bruhat Bengaluru Mahanagara Palike which is

marked as Ex.P63. On perusal of the legal opinion, it

shows      that     advocate        for    Bruhat        Bengaluru

Mahanagara Palike has suggested in his legal opinion

to the defendant for making payment to the plaintiff

for providing computer training. But evidence on

record clearly shows that even after said legal opinion

and      even     after    order     passed      by      the   then

Commissioner        of     Bruhat    Bengaluru         Mahanagara

Palike for making payment of computer training fees,

defendants have not made payments.


      20. Further in this case evidence on record

clearly shows that plaintiff also filed writ petition
 20                 CT0028_O.S._4167_2014_Judgment_

no.9750/2012     before    Hon'ble   High    Court    of

Karnataka against defendant directing the defendant

to consider the representation of the plaintiff for

payment of computer training fees. After hearing,

Hon'ble High Court of Karnataka has directed the

defendant herein to consider the representation of the

plaintiff. Further evidence on record clearly shows

that pursuant to the order dated 17.7.2012 passed by

Hon'ble High Court of Karnataka in the aforesaid Writ

Petition, the then Commissioner of defendant by order

dated 19.2.2013 ordered for payment of computer

training fees to the plaintiff and also directed to take

steps for disposal of the computer, accessories and

furniture through public auction. Further evidence on

record clearly shows that even after the said order, the

payments have not been made by implementing the

office order dated 19.2.2013. Further evidence on

record clearly shows that as defendant has not made

the payments the plaintiff again filed Writ Petition

No.17572/2013     before   Hon'ble    High   Court    of
 21                  CT0028_O.S._4167_2014_Judgment_

Karnataka seeking direction to implement the office

order dated 19.2.2013. Further the evidence on record

clearly shows that Hon'ble High Court of Karnataka by

order dated 4.6.2013 directed the defendant to

implement the office order dated 19.2.2013 within six

weeks. Further evidence on record clearly shows that

inspite of the said direction, the payment of computer

training fee has not been made by giving effect to the

office order dated 19.2.2013. Further evidence on

record clearly shows that thereafter plaintiff was

constrained to file contempt of court proceedings in

CCC No.1405/13. At that time, defendant has paid

balance of computer training fees and plaintiff has

received amount. In view of the above fact, it is much

clear that plaintiff was denied of receiving payment

immediately after completion of the training      and

plaintiff has been prevented from utlising the money

for which plaintiff is legally entitled for payment of

interest for the belated period.
 22                  CT0028_O.S._4167_2014_Judgment_

      21. DW.1 also in his cross-examination clearly

admitted that in the year 2012 plaintiff has requested

to make payment with interest and they have not

made payment to the plaintiff. It clearly shows that

even though plaintiff has made request even in the

year 2012 itself, but defendant has not made the

payment to the plaintiff. DW.1 also in his cross-

examination admitted that in the year 2013, their

Bruhat Bengaluru Mahanagara Palike Commissioner

has passed an order to make payment to the plaintiff

immediately and     as per Ex.P65 Commissioner has

ordered to sale of computer and other accessories and

furniture in the public auction and to share the

amount among plaintiff and defendant. From the

evidence of DW.1 it is much clear that even though

Commissioner has passed an order to make payment

to the plaintiff but defendant has not made payment

to the plaintiff.
 23                 CT0028_O.S._4167_2014_Judgment_

     22. Further Ex.P65 also clearly shows that

Commissioner has ordered to sale of computer and

other accessories and furniture in public auction and

to share the amount among plaintiff and Bruhat

Bengaluru Mahanagara Palike.


     23. Further evidence on record clearly shows

that as per Ex.P65 defendant has not conducted any

auction. In this case plaintiff has produced letter given

by Bruhat Bengaluru Mahanagara Palike which is

marked as Ex.P82. On perusal of the same, it clearly

shows that plaintiff has donated computer accessories

and furnitures of her share to the Bruhat Bengaluru

Mahanagara Palike. Further Ex.P83 also clearly shows

that after making donation by the plaintiff, Bruhat

Bengaluru Mahanagara Palike given appreciation

letter to the plaintiff. DW.1 also in his cross-

examination admitted contents of Ex.P82 and Ex.P83.

DW.1 also in his cross-examination clearly admitted

that in his affidavit evidence, he has stated that there
 24                   CT0028_O.S._4167_2014_Judgment_

was some delay in making payment. Hence from the

evidence on record it is much clear that even though

defendant is liable to pay the amount to the plaintiff

for providing training to the students but defendant

without any reasons has withheld the payment of

amount to the plaintiff. Therefore, plaintiff is entitled

for payment of interest for the belated period. In this

case   plaintiff   examined   as   PW.1.   Advocate   for

defendant has cross-examined PW.1 at length. But

nothing has been elicited from the mouth of PW.1 to

disbelieve her evidence. Hence I do not find any

reasons to disbelieve the evidence of PW.1. Further I

do not find any reasons to doubt the genuineness of

documents produced by the plaintiff. On perusal of

the entire evidence on record it is much clear that as

per agreement, even though plaintiff has given

training to the students but defendant has not made

payments to the plaintiff immediately but defendant

has made payments at belated stage. Further evidence

on record clearly shows that without any reasons
 25                    CT0028_O.S._4167_2014_Judgment_

plaintiff   was    denied    of    receiving     the     payment

immediately after completion of training and plaintiff

has been prevented for utilizing the money for which

defendant is liable to pay interest for belated payment.


      24. In this case plaintiff claimed interest at the

rate of 9% payable from the date of completion of

training period. According to plaintiff, she is entitled

for a sum of Rs.47,44,033/- being the interest for the

belated payment as on the date when defendant made

payment of computer training fees. Admittedly, there

is no contract between the parties to pay interest on

the delayed payment. PW.1 also in her cross-

examination       clearly   admitted      that   there    is   no

contractual   obligation      on    the     part   of     Bruhat

Bengaluru Mahanagara Palike to pay interest on the

delayed payments.


      25. Hence from the evidence on record it is

much clear that there was no agreement between the

plaintiff and defendant to pay interest on delayed
 26                 CT0028_O.S._4167_2014_Judgment_

payments. It is pertinent to note that even though

there was no agreement between the parties with

regard to interest on the delayed payments but as per

Section 3 of the Interest Act, 1978, the plaintiff is

entitled to interest on the delayed payments. As per

Section 3 of the Interest Act, 1978, in any proceedings

for recovery of any debt or damages or in any

proceedings in which claim for interest in respect of

any debt or damages already paid is made, the Court

may if it thinks fit allow the interest to the person

entitled to the death or damages or to the person

making such claim as the case may be, at the rate not

exceeding current rate of interest for the whole or part

of the period. Hence even though there is no contract

between the parties with regard to payment of interest

on the delayed payments, but as per Section 3 of the

Interest Act, the court may if it fit to think can allow

the interest to the person entitled at a rate not

exceeding current rate of interest.
 27                    CT0028_O.S._4167_2014_Judgment_

     26. From the evidence on record it is much

clear that even though plaintiff has completed her

work as per agreement, defendant has not made

payments within stipulated period. Further evidence

on record clearly shows that even though Bruhat

Bengaluru Mahanagara Palike Commissioner has

passed order to make payment, but defendant has not

made payment to the plaintiff after completion of

training and plaintiff has been prevented from utlising

the money and defendant without any reasons has

withheld the legitimate amount of the plaintiff and

hence plaintiff is entitled for interest on the delayed

payments even though in the absence of agreement

regarding payment of interest as per Section 3 of The

Interest Act, 1978.


     27. It is held in a decision reported in (2009) 7

SCC 372 wherein Hon'ble Supreme Court of India has

held as under:
 28                 CT0028_O.S._4167_2014_Judgment_

                "Interest - Equitable interest -

          Principles restated - Interest Act,

          1978 - S.3 - Civil Procedure Code,

          1908, S.34 (Paras 23 to 25).


                G. Interest - Award of interest -

          Rights     of    claimant      -    Due

          entitlement        period    -     Basic

          principles, equitable considerations

          and       permissible   deviations     -

          discussed - Civil Procedure Code,

          1908 - S.34 - Debt, Financial and

          Monetary Laws - Interest Act, 1978

          - S.3 - Tort Law - Compensation/

          Damages - Interest."


     28. Further, our Hon'ble High Court of Karnataka

reported in ILR 1992 KAR 1103 held as under:


                "INTEREST ACT, 1978 (Central

          Act No.14 of 1978) - Section 3 - Suit

          for value of goods supplied: Interest
 29                  CT0028_O.S._4167_2014_Judgment_

         thereon - No stipulation, agreement,

         plea or proof of trade usage or

         custom - Interest at current rate of

         interest from date of demand - Non

         -mention of rate of interest while

         making      demand,    of    no   material

         consequence, Act defining current

         rate of interest."


     29. Further,     our   Hon'ble   High    Court   of

Karnataka also in a decision reported in ILR 1992

KAR 1678 held as under:


         "INTEREST ACT, 1978 (Central Act

         No.14 of 1978) - Section 3(1) -

         Attracted if either clause (a) or (b)

         satisfied not both - Current rate of

         Interest - Bank rate."


     30. From the above said rulings, it is much

clear that even though there was no agreement

between the parties Court has got power to award
 30                 CT0028_O.S._4167_2014_Judgment_

suitable interest as per Section 3 of the Interest Act.

Admittedly in this case there was no agreement

between the parties to pay interest on delayed

payments. But in this case, defendant has withheld

the amount of the plaintiff without any valid reasons

and made delayed payments. Therefore, plaintiff is

entitled for interest on the delayed payment.


     31. In this case plaintiff claimed interest at the

rate of 9% per annum on the delayed payments.

Plaintiff filed this suit in the year 2014. Plaintiff has

requested the defendant to make payment in the year

2012 itself after completion of imparting training to

the students. During the year 2012 to 2014, bank rate

of interest on the FD was more than 9% per annum.

As per Section 3 of the Interest Act, the Court has got

power to award interest even in the absence of

agreement between the parties at the rate not

exceeding current rate of interest. As already stated

during the year 2012 to 2014, current rate of interest
 31                      CT0028_O.S._4167_2014_Judgment_

was more than 9% per annum. Therefore, plaintiff is

entitled for interest at the rate of 9% per annum on

the delayed payments made by the defendant.


     32. In this case plaintiff claimed principal

amount       of      Rs.47,44,033/-        and     interest   at

Rs.3,75,493/- at the rate of 9% per annum from

12.7.2013 to 13.5.2014. The interest claimed by the

plaintiff at the rate of 9% per annum is just and

proper. Hence plaintiff is entitled to claim interest at

the rate of 9% per annum on the delayed payments.

Therefore,        plaintiff    is    entitled    for   sum    of

Rs.51,19,526/-.


     33. In         this      case   plaintiff   has    claimed

Rs.20,000/- towards legal notice charges. The amount

claimed by the plaintiff towards legal notice charges is

appears to be exorbitant and plaintiff is not entitled

for Rs.20,000/- towards legal notice charges. However

it is just and proper to award Rs.5,000/- towards legal

notice charges. Therefore, plaintiff in all is entitled for
 32                         CT0028_O.S._4167_2014_Judgment_

Rs.51,24,526/- from the defendant and defendant is

liable to pay said amount to the plaintiff. Plaintiff

partly proved Issue No.1. Accordingly, I answer issue

no.1 partly in the affirmative.


       34. ISSUE NO.2:               Plaintiff   filed      this   suit

against     defendant          for      recovery     of      sum     of

Rs.51,39,526/- from the defendant with interest

pendentelite. While answering issue no.1, it is held

that    plaintiff     is     entitled      to    recover     sum     of

Rs.51,24,526/-         from       the      defendant.       Therefore,

plaintiff is entitled to recover sum of Rs.51,24,526/-

from the defendant towards delayed payments.


       35. Looking to the facts and circumstances of

the case, it is just and proper to direct the defendant

to pay the above said amount within three months

from the date of this Judgment. Failing which

defendant is liable to pay interest at the rate of 6% per

annum on the decreetal amount from the date of

default    till     realization       of   the     entire     amount.
 33                    CT0028_O.S._4167_2014_Judgment_

Accordingly, I answer issue no.2 partly in the

affirmative.

     36.     ISSUE NO.3:      From my above discussions

and reasoning, the suit of the plaintiff deserves to be

decreed in part with costs. In the result, I pass the

following:




          The suit of the plaintiff is         hereby

             decreed in part with costs.

          Plaintiff is entitled to recover sum of

             Rs.51,24,526/- from the defendant.

          Defendant is hereby directed to pay

             the above said amount to the plaintiff

             within three months from the date of

             this    Judgment.       Failing   which

             defendant is liable to pay interest at

             the rate of 6% per annum on the

             decreetal amount from the date of

             default till realization.
 34                    CT0028_O.S._4167_2014_Judgment_


           Draw decree accordingly.

                            ***

[Dictated to the Judgment Writer directly on computer, Script corrected, signed and then pronounced by me, in the Open Court on this the 17th day of March 2017.] [S.H. HOSAGOUDAR] XXVII Additional City Civil Judge.

BANGALORE.

1. List of witnesses examined on behalf of the Plaintiff/s:

PW.1 Smt.Vasundara A.G.K.

2. List of witnesses examined on behalf of the Defendant/s:

DW.1 V.Tharanath

3. List of documents marked on behalf of the Plaintiff/s:

Ex.P 1 Endorsement issued by defendant Ex.P 2 Certified copy Work order dated 19.10.2006 Ex.P 3 Certified copy of agreement dated 26.10.2006 Ex.P 4 Certified copy of work dated 5.5.2006 Ex.P 5 Certified copy of agreement dated 5.6.2006 35 CT0028_O.S._4167_2014_Judgment_ Ex.P 6 Certified copy of work order dated 5.1.2006 Ex.P 7 Certified copy if agreement dated 16.1.2006 Ex.P 8 Work order dated 5.1.2006 Ex.P 9 Certified copy of agreement dated 16.1.2006 Ex.P 10 Certified copy of work order dated 5.1.2006 Ex.P 11 Certified copy of agreement Ex.P 12 Certified copy of work order 2.8.2005 Ex.P 13 Certified copy of agreement dated 23.8.2005 Ex.P 14 Certified copy of work order dated 5.1.2006 Ex.P 15 Certified copy of agreement dated 16.1.2006 Ex.P 16 Certified copy of work order dated 19.10.2006 Ex.P 17 Certified copy of agreement dated 26.10.2006 Ex.P 18 Certified copy of work order dated 5.1.2006 Ex.P 19 Certified copy of agreement dated 16.1.2006 Ex.P 20 Certified copy of work order dated 19.10.2006 Ex.P 21 Certified copy of agreement dated 26.10.2006 Ex.P 22 Certified copy of work order dated 26.3.2005 Ex.P 23 Certified copy of agreement dated 23.8.2005 Ex.P 24 Certified copy of work order dated 18.2.2006 Ex.P 25 Certified copy of agreement dated 8.3.2006 36 CT0028_O.S._4167_2014_Judgment_ Ex.P 26 Certified copy of work order dated 26.3.2006 Ex.P 27 Certified copy of agreement dated 28.3.2005 Ex.P 28 Certified copy of agreement dated 23.8.2005 Ex.P 29 Certified copy of work order dated 5.5.2006 Ex.P 30 Certified copy of agreement dated 5.6.2006 Ex.P 31 To Office copies of the bills Ex.P 62 Ex.P 63 Certified copy of the legal opinion dated 26.6.2010 Ex.P 64 Certified copy of the order passed in W.P.Nos. 9749 and 9750/12 Ex.P 65 Certified copy of the office order dated 19.2.2013 Ex.P 66 Certified copy of the order dated

4.6.2013 passed in W.P.Nos.17571 and 17572/13 Ex.P 67 Certified copy of the order dated 26.9.2013 in CCC Nos.1404 and 1405/13 Ex.P 68 Letter dated 12.7.2013 Ex.P 69 Letter dated 20.8.2013 Ex.P 70 Letter dated 20.9.2013 Ex.P 71 Office copy of the legal notice Ex.P 72 Acknowledgement Ex.P 73 3 Statements of calculation of To interest amount.

Ex.P 75 Ex.P 76 Entire order sheet Ex.P 77 Certified copy of the report Ex.P 78 And Certified copies of 2 enquiry Ex.P 79 reports 37 CT0028_O.S._4167_2014_Judgment_ Ex.P 80 Report submitted by BBMP Commissioner Ex.P 81 Certified copy of the inter office note Ex.P 82 Letter given to Bruhath Bangalore Mahanagara Palike Ex.P 83 Appreciation letter given by the Bruhath Bangalore Mahanagara Palike to the plaintiff.

4. List of the documents marked for the defendants:

Nil.
[S.H. HOSAGOUDAR] XXVII Additional City Civil Judge, BANGALORE.
17/03/2017 P-VTP D-HSS For Judgment....
...Judgment pronounced in the Open Court....
(Vide separate detailed judgment) The suit of the plaintiff is hereby decreed in part with costs.
Plaintiff is entitled to recover sum of Rs.51,24,526/- from the defendant. Defendant is hereby directed to pay the above said amount to the plaintiff within three months from the date of this Judgment. Failing which defendant is liable to pay interest at the rate of 6% per annum on the decreetal amount from the date of default till realization. Draw decree accordingly.
[S.H.HOSAGOUDAR] XXVII Additional City Civil Judge.
BANGALORE.
40 CT0028_O.S._4167_2014_Judgment_ 41 CT0028_O.S._4167_2014_Judgment_ 42 CT0028_O.S._4167_2014_Judgment_