Delhi District Court
Harish Ahuja vs Milan on 3 June, 2024
IN THE COURT OF MS NEETI SURI MISHRA,
SCJ CUM RC (NORTH), ROHINI COURTS, DELHI
In the matter of :-
Sh. Harish Ahuja
S/o Sh. Baldev Raj Ahuja
R/o 813, First Floor,
Dr. Mukharjee Nagar,
Delhi - 110009. .....Plaintiff
VERSUS
Smt. Milan
W/o Sh. Sunil
R/o 558, T - Huts, Gopal Pur Village,
Near Batra Bandh,
Delhi - 110009. .....Defendant
JUDGMENT
CNR No. DLNT 0300 0019 2024 Case No. 27/24 Under Section XXXVII CPC Date of Institution 08/01/2024 Date of reserving for orders 03/06/2024 Date of Final Order 03/06/2024 Final Order Suit decreed
1. Vide this judgment, I shall decide the summary suit under Order XXXVII CPC for recovery of Rs. 50,000/- alongwith pendente lite and future interest @ 18% per annum.
2. The brief facts for disposal of the present suit are as follows :-
The Plaintiff is a law abiding citizen and living with his family at the above mentioned address. The husband of the CS SCJ No. 27/24 Harish Ahuja Vs. Milan Page 1 of 5 Defendant and Plaintiff had good family relations for last many years. In the month of January 2020, the husband of the Defendant was in very urgent need of money for fulfillment of family requirements and he approached the Plaintiff for grant of a friendly loan of Rs. 50,000/- for some period. The Plaintiff advanced a sum of Rs. 50,000/- on 11/01/2020 as friendly loan and the husband of the Defendant assured the Plaintiff to return the said loan amount within one year. After lapse of one year, the Plaintiff requested the husband of Defendant to return the loan amount but he showed his inability to return the loan amount in cash and in discharge of legal liability i.e. the loan amount of her husband. However, the Defendant in discharge of the legal liability of her husband issued two post dated cheques bearing no. 086081, dated 15/02/2021 for a sum of Rs. 30,000/- and cheque bearing no. 086082, dated 24/02/2021 for a sum of Rs. 20,000/-, both drawn on Syndicate Bank, DTC Depot, BB Marg, Branch, New Delhi - 110009 in favour of the Plaintiff and assured that the same will be encashed on presentation.
As per the assurance of the Defendant, the Plaintiff presented the said cheques to his banker i.e. Punjab National Bank, Mall Road, Kingsway Camp, Delhi - 110009 on 10/03/2021 for encashment but the said cheques were received back uncashed with the remarks "Funds Insufficient" vide Return Memo. Thereafter, the Plaintiff had informed the Defendant about the dishonour of cheques but the Defendant neither paid the cheques amount nor paid any heed to the Plaintiff and kept on avoiding the same on one pretext or the other. The Plaintiff made several telephonic calls to the Defendant and made several requests to pay the said amount but all in vain. Thereafter, the CS SCJ No. 27/24 Harish Ahuja Vs. Milan Page 2 of 5 Plaintiff sent a Legal Notice dated 24/03/2021 and reminder dated 27/12/2023 but the Defendant neither replied to the same nor paid even a single penny to the Plaintiff. Eventually, the Plaintiff had been constrained to file the present suit for recovery of loan amount.
3. Summons of the suit in the prescribed format given in Form 4 Appendix 'B' under Order XXXVII CPC were sent to Defendant and the same were duly served upon her on 07/02/2024. Husband of Defendant appeared before the Court on 22/03/2024 and submitted that he has not engaged a Counsel. Notice of appearance alongwith the address of the Defendant was taken on record from the husband of Defendant. The husband of the Defendant submitted that there are elements of settlement and accordingly, both the parties were directed to appear in person on 03/06/2024.
4. But thereafter neither did the Defendant appear nor did she file her address for service of notice on her within 10 days from the delivery of summons in compliance with Order XXXVII rule 3 (a) CPC despite opportunity given. Defendant did not even appear for considering settlement with Plaintiff. Although, her address was filed by her husband but the Defendant personally failed to file the memorandum of appearance.
5. Hence, the Defendant did not put her appearance as per Order XXXVII rule 3 (1) within 10 days of receiving the summons or thereafter till date.
CS SCJ No. 27/24 Harish Ahuja Vs. Milan Page 3 of 56. In view of the provision provided under Order XXXVII Rule 2 (3) CPC, it is deemed that the Defendant has admitted the case of Plaintiff and in the considered opinion of this Court, the Plaintiff is entitled to decree as per law.
7. The suit of the Plaintiff is based on cheques issued in favour of Defendant. A suit based on a cheque squarely falls within the scope and ambit of the summary procedure prescribed under Order XXXVII of the CPC.
8. Although, Plaintiff has claimed the interest @ 18% per month, the same seems to be exorbitant. The Hon'ble Division Bench of the Hon'ble High Court of Delhi in the case of Pt. Munshi Ram & Associates (P) Ltd. Vs. DDA, 2010 SCC Online Del 2444, has held that higher rates of interest, which are against public policy, can be struck down by the Court by finding such rates of interest to be against the public policy. Any Contract, which is against the public policy, is void under Section 23 of the Indian Contract Act, 1872. The said Judgment was also relied upon by the Hon'ble Single Bench of the Hon'ble High Court in case bearing R.F.A. No. 823 of 2004, titled as Shri Sanjay Mittal Versus Sunil Jain decided on 07/12/2018. The Hon'ble Single Bench has granted 9% p.a. interest instead of 24% per annum i.e. 2% per month.
9. In view of above said facts, circumstances and consideration the suit of Plaintiff is decreed and it is held that the Plaintiff is entitled to recovery of Rs. 50,000/- alongwith 9% p.a. CS SCJ No. 27/24 Harish Ahuja Vs. Milan Page 4 of 5 pendente lite and future interest from the date of institution of the suit till its realization from the Defendant. It is ordered accordingly.
10. The Plaintiff is also awarded with the costs of the suit.
11. Decree sheet be prepared after the Plaintiff pays the requisite Court fees, if any. File be consigned to Record-Room, after due compliance.
Announced in the open Court on this 03rd day of June, 2024 (NEETI SURI MISHRA) SCJ-CUM-RC NORTH DISTRICT, ROHINI COURT, DELHI It is certified that this judgment contains 05 pages and every page is signed by me.
(NEETI SURI MISHRA) SCJ-CUM-RC NORTH DISTRICT, ROHINI COURT, DELHI CS SCJ No. 27/24 Harish Ahuja Vs. Milan Page 5 of 5