Delhi District Court
Civil Suit No: 286/19 vs Sh. Parmeshwar Singh on 19 October, 2019
IN THE COURT OF DHEERAJ MOR, ADDITIONAL SENIOR CIVIL
JUDGE, NEW DELHI DISTRICT, PATIALA HOUSE COURT, NEW DELHI
Civil Suit no: 286/19
M/s. True Link Finance Limited
Reg. Office-D-44, Mohan Singh Market,
Sector-6, R. K. Puram, New Delhi-110022. ........Plaintiff
Versus
Sh. Parmeshwar Singh
S/o Sh. Anil Singh
H. No.1377, Sector-3,
Pushp Vihar, New Delhi-110017.
(Previous Residential Address-Not for service)
Sh. Parmeshwar Singh
S/o Sh. Anil Singh
H. No.26/3, Andrews Ganj,
Near Ansal Plaza, New Delhi-110049.
Alternative Address:-
Sh. Parmeshwar Singh
S/o Sh. Anil Singh
(Emp. Code-PS105071961BELD051993)
(Beldar), CPWD,
Pushp Vihar Maintenance Division,
Pushp Bhawan, New Delhi-110062 .......Defendant
Date of Institution : 27.02.2019
Date on which judgment was reserved : 19.10.2019
Date of pronouncing judgment : 19.10.2019
SUIT U/O XXXVII CPC FOR RECOVERY OF RS.9,638/- ALONGWITH
PENDENTE-LITE AND FUTURE INTEREST @ 2.5% P.M.
JUDGMENT
1. The present summary suit under Order XXXVII Code of Civil Procedure is for recovery of total sum of Rs.9,638/- along with pendente-lite and future interest @ 2.5% per month. However, on M/s. True Link Finance Ltd. Vs. Parmeshwer Singh CS No.286/19 Page No. 1 of 5 28.02.2019, the same was converted into an ordinary suit. Initially, the present suit was filed against two defendants i.e. Sh. Prakash Singh and the defendant herein. However, on 16.10.2019 the name of Sh. Prakash Singh was deleted from the list of defendants. Therefore, now only one defendant survives in the present case.
2. Briefly stated, the case of the plaintiff is that Sh. Prakash Singh executed a hire purchase agreement dated 29.10.2017 with the plaintiff for purchase of One HP Laptop. The necessary documents were executed and loan of Rs.27,310/- was sanctioned and disbursed to Sh. Prakash Singh. As per the said agreement, Sh. Prakash Singh had agreed to pay total sum of Rs.33,864/- including interest towards the repayment of the said loan. Defendant signed all the said documents as the guarantor of Sh. Prakash Singh for the said loan. As per said agreement and promissory note, Sh. Prakash Singh and the defendant undertook to be jointly and severally liable. The said loan along with interest was repayable in 12 monthly installments of Rs.2,822/- each with effect from 01.12.2017. As per said agreement, interest at the rate of 2.5% per month was agreed to be charged for delayed payment. As per books of accounts of the plaintiff maintained by it, Sh. Prakash Singh had paid an amount of Rs.26,522/- till the date of institution of the present suit on 27.02.2019 and an amount of Rs.9,638/- (including interest of Rs.2296/-) was outstanding. Hence, the present suit for recovery of the said amount along with interest.
3. Summons of the suit were issued to the defendant and the same were duly served upon him. But despite service, he failed to appear. Accordingly, he was proceeded ex-parte vide order dated 16.10.2019 and the case was fixed for ex-parte plaintiff evidence.
4. In ex-parte plaintiff evidence, plaintiff examined its AR, Sh. R.P. M/s. True Link Finance Ltd. Vs. Parmeshwer Singh CS No.286/19 Page No. 2 of 5 Mishra. He has tendered his evidence by way of affidavit Ex. PW1/1. He has reiterated the contents of the plaint on oath. Therefore, they are not reproduced herein for the sake of brevity and to avoid repetition. He has relied upon following documents:-
a) Incorporation certificate is Ex. PW-1/2 (OSR);
b) RBI Registration certificate Ex. PW-1/3 (OSR);
c) Copy of minute book dated 20.12.2017 is Ex. PW-1/4 (OSR);
d) Hire Purchase Proposal Agreement dated 29.10.2017 is Ex. PW-1/5;
e) Hire Purchase Agreement dated 29.10.2017 is Ex. PW-1/6;
f) Promissory Notice dated 29.10.2017 is Ex. PW-1/7;
g) Legal Notice dated 16.11.2018 is Ex. PW-1/8;
h)Postal receipts are Ex.PW1/9;
i) Statement of account of the defendant maintained by the plaintiff company, on which the certificate under section 65B Evidence Act is stamp impressed is Ex. PW-1/10;
j) Copy of form No. 32 is Mark A;
k) Copy of Aadhar Card of Sh. Prakash Singh is Mark B; and
m) Copy of office I Card defendant is Mark C. Vide order dated 16.10.2019, plaintiff evidence was closed.
5. Final arguments are heard. Case file is carefully perused.
6. The testimony of PW1 has remained un-impeached. He has consistently, categorically and unequivocally testified that Sh. Prakash Singh had availed aforesaid loan/Hire Purchase facility from the plaintiff and defendant stood as his surety/guarantor. He has proved hire purchase agreement Ex. PW-1/6 and promissory note Ex. PW-1/7 reflecting that the said loan was disbursed to Sh. Prakash Singh and defendant stood as the guarantor of the aforesaid loan. Thus, as per said documents, Sh. Prakash Singh and the defendant are jointly and severally liable to repay the said loan. PW-1 has also proved the statement of account of the said loan maintained with the plaintiff as Ex.PW1/10. He has supported the said statement of account with a certificate u/s 65(B) Evidence Act, 1872, which is stamp impressed upon M/s. True Link Finance Ltd. Vs. Parmeshwer Singh CS No.286/19 Page No. 3 of 5 Ex. PW-1/10. The suit of the plaintiff has remained uncontroverted and unrebutted as none has appeared on behalf of the defendant to cross- examine the plaintiff's witness. In view of the aforesaid documents and testimonies of PW1, there exists no reason to disbelieve the case of the plaintiff. Therefore, all the averments made in the plaint and documents placed on record are deemed to be admitted and hence, proved. In the instant case, the principal borrower of the loan is Sh. Prakash Singh. Since the defendant stood as the surety for the repayment of the said loan and his liability is joint and several, he is liable to repay the entire outstanding amount due against the said principal borrower. By virtue of the un-impeached testimony of PW-1 and the documents proved on record by him, I am satisfied that, on the date of institution of this suit, a total amount of Rs.9,638/- was due and payable by the defendant to the plaintiff towards the repayment of the aforesaid loan.
7. The present suit is filed within the statutory limitation period.
Further, the cause of action arose within the territorial jurisdiction of this court as transaction between the parties took place within the jurisdiction of R.K. Puram, New Delhi and the installment of HP amount were payable at Delhi, which falls within the jurisdiction of this court. Thus, this court has territorial jurisdiction to try this case. Furthermore, since the value of the suit is less than Rs. 3,00,000/-, this court has pecuniary jurisdiction to try and adjudicate this case.
8. In respect of pendente lite and future interest, the plaintiff has claimed a interest @ 2.5 % per month. However, I am of the considered opinion that the said rate of interest is penal, exorbitant and unreasonable. The pendentelite and future interest @ 6% per annum would serve the ends of justice. Further, the aforementioned claimed amount is computed after adding principal amount of Rs.7,342/- and the M/s. True Link Finance Ltd. Vs. Parmeshwer Singh CS No.286/19 Page No. 4 of 5 interest of Rs.2,296/-, which is calculated from the date of default till institution of the present suit. Thus, if the interest is awarded on the total claimed amount of Rs.9,638/-, it would be a compounding interest, which would be unreasonable and unjust. Therefore, the interest should be awarded on the original principal amount of Rs.7,342/-.
9. Thus, the suit of the plaintiff is decreed in favour of the plaintiff and against the defendant for the sum of Rs.9,638/- (Rupees Nine Thousand Six Hundred and Thirty Eight Only) alongwith interest at the rate of 6% per annum on the principal amount of Rs.7,342/- (Rupees Seven Thousand Three Hundred Forty Two only) from the date of filing of this suit till its realisation.
10. Cost of the suit is assessed as Rs. 2,200/- and it is also awarded in favour of the plaintiff and against the defendant.
Decree sheet be prepared.
File be consigned to Record Room after due compliance.
ANNOUNCED IN THE OPEN COURT ON 19.10.2019 (DHEERAJ MOR) ADDITIONAL SENIOR CIVIL JUDGE, PATIALA HOUSE COURTS, NEW DELHI This judgment contains five pages and each page is signed by me.
(DHEERAJ MOR) ADDITIONAL SENIOR CIVIL JUDGE, PATIALA HOUSE COURTS, NEW DELHI M/s. True Link Finance Ltd. Vs. Parmeshwer Singh CS No.286/19 Page No. 5 of 5 CS No.286/19 M/s True Link Finance Ltd. Vs. Parmeshwar Singh 19.10.2019 Present: Sh. R.P. Mishra, AR for the plaintiff.
Defendant is ex-parte vide order dated 16.10.2019.
Vide separate judgment of the even date announced in the open court, the suit of the plaintiff is decreed in favour of the plaintiff and against the defendant for the sum of Rs.9,638/- (Rupees Nine Thousand Six Hundred and Thirty Eight Only) alongwith interest at the rate of 6% per annum on the principal amount of Rs.7,342/- (Rupees Seven Thousand Three Hundred Forty Two only) from the date of filing of this suit till its realisation.
Cost of the suit is assessed as Rs. 2,200/- and it is also awarded in favour of the plaintiff and against the defendant.
Decree sheet be prepared.
File be consigned to Record Room after due compliance.
(DHEERAJ MOR) ADDITIONAL SENIOR CIVIL JUDGE, PATIALA HOUSE COURTS, NEW DELHI/19.10.2019 M/s. True Link Finance Ltd. Vs. Parmeshwer Singh CS No.286/19 Page No. 6 of 5