Punjab-Haryana High Court
Shaheed Bhagat Singh Co-Op. House ... vs Improvement Trust, Ludhiana And Ors on 10 October, 2014
RSA No. 1118 of 2011 -1-
IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
RSA No. 1118 of 2011 (O&M)
Date of Decision : 10.10.2014
Shaheed Bhagat Singh Cooperative House Building Society ltd.
.....Appellant
Versus
Improvement Trust Ludhiana and another
....Respondents
CORAM: HON'BLE MR. JUSTICE R.P. NAGRATH
1. Whether Reporters of the local papers may be allowed to
see the judgment?
2. To be referred to the Reporters or not?
3. Whether the judgment should be reported in the digest?
Present: Mr. Yogesh Goel, Advocate
for the appellant.
R.P. Nagrath, J. (Oral)
CM No. 3103-C of 2011 For the reasons stated in the application, which is supported by an affidavit, the same is allowed and delay of 63 days in filing the instant appeal is condoned. RSA No. 1118 of 2011 (O&M)
The only challenge to the judgment passed by the Courts below is that the interest @ 12% per annum on the decretal amount was not granted. The suit was filed by the plaintiff for recovery of ` 5,76,975/- detailed as ` 3,81,475/- being principal sum and rest of the amount of ` 1,95,500/- towards interest @ 18% per annum.
Recovery suit arose because of the settlement reached JITENDER KUMAR 2014.10.13 10:27 I attest to the accuracy and authenticity of this document Chandigarh RSA No. 1118 of 2011 -2- with the Improvement Trust in respect of the acquisition proceedings and in the said proceedings 58 plots were allotted to the appellant-society. The grievance of the appellant-society was that the development work had not started as per the undertaking given by the Improvement Trust despite the appellant-society depositing an amount of ` 3,81,475/- as development charges.
The bone of contention of learned counsel for the appellant-society is that as per the terms stipulated between the parties, in case the appellant-society does not make the payment on time, the Improvement Trust could recover the amount with interest @ 12% per annum. Under this clause, the appellant- society has claimed that equal amount of interest should have been granted to the appellant-society. Learned Ist appellate Court has observed as under:-
"This clause clearly defines a fact that interest is the part of the deal in body and spirit and in case of fault in the discharge of its duty towards contract one shall pay the interest. The privity of contract can be no ground to deny interest to the plaintiff. If the respondents were not in a position to make development for reasons whatsoever they had no right to retain the amount for the said purpose and should have returned the amount immediately. In case they have retained the amount they are bound to return the same with interest.
As an up shot of this discussion, appeal partly succeeds. The judgment and decree is modified to the extent that plaintiff is entitled to interest at the rate of JITENDER KUMAR 2014.10.13 10:27 I attest to the accuracy and authenticity of this document Chandigarh RSA No. 1118 of 2011 -3- 9% from the date of deposit of development charges and exemption fee till the filing of the suit. Further interest i.e. pendente lite and future granted by the learned trial Court is affirmed. Appeal qua other aspects of the case stands dismissed.........."
I find from the above observations that the discretion has been rightly exercised by the Ist appellate Court and there is no scope of finding any substantial question of law arising in this appeal.
Dismissed.
October 10, 2014 ( R.P. NAGRATH )
jk JUDGE
JITENDER KUMAR
2014.10.13 10:27
I attest to the accuracy and
authenticity of this document
Chandigarh