Delhi District Court
The Purvanchal Co Op Urban T/C Society ... vs Ram Jan Ali on 2 September, 2024
IN THE COURT OF MS NEETI SURI MISHRA,
SCJ CUM RC (NORTH), ROHINI COURTS, DELHI
In the matter of :-
The Purvanchal Co-op Urban T/C Society Ltd.
Regd. Office
R/o C - 1/299, 3rd Pusta,
Gali No. 09, Sonia Vihar,
Delhi - 110094.
Through Its AR
Sh. Anil Sahu
S/o Sh. Chhedi Lal
R/o C - 1/299, 3rd Pusta,
Gali No. 09, Sonia Vihar,
Delhi - 110094.
.....Plaintiff
VERSUS
Ramjan Ali
S/o Sh. Mohd. Alam
R/o House No. O - 555,
Metro Vihar, Holambi Kalan,
Delhi - 110082.
.....Defendant
JUDGMENT
CNR No. DLNT 0300 1625 2022 Case No. 1030/22 Under Section XXXVII CPC Date of Institution 04/08/2022 Date of reserving for orders 08/08/2024 Date of Final Order 02/09/2024 Final Order Suit decreed CS SCJ No. 1030/22
The Purvanchal Co-Op Urban T/C Society Ltd. Vs. Ramjan Ali Page 1 of 5
1. Vide this judgment, I shall decide the summary suit under Order XXXVII CPC for recovery of Rs. 1,62,577/- alongwith pendente lite and future interest @ 21% per annum.
2. The brief facts for disposal of the present suit are as follows :-
The Plaintiff is a society registered with the Registrar of Co-Op Societies under society registration act in the name and style "The Purvanchal Co-Op Urban T/C Society Ltd." having its registered office at the above mentioned address. The present suit is filed by the AR/Manager of the Society.
The Plaintiff is in the business of providing financial help/loan to its needy members under a specific procedure of filling up of membership form, offering of 2 to 3 sureties/guarantors, its records, ID Proofs, residence proof etc. The Defendant is a member of the Plaintiff Society having membership No. 1365.
That in the year 2015, The Defendant had been advanced a loan of Rs. 1,00,000/- which was to be repaid by him in monthly installments. But the Defendant has failed to repay the requisite/agreed installments. Thereafter, in response to the telephonic communications and personal visits by the executive of the Society, the Defendant alongwith his Sureties approached the Plaintiff Society and settled the loan and the Defendant also issued a cheque and stated that the same will be honored on presentation in Bank.
On account of discharge of his liability, the Defendant issued a cheque bearing no. 203268, dated CS SCJ No. 1030/22 The Purvanchal Co-Op Urban T/C Society Ltd. Vs. Ramjan Ali Page 2 of 5 31/03/2021, drawn on DENA Bank, Bawana Branch, Delhi - 110039 for an amount of Rs. 1,62,577/- in favour of Plaintiff Society. But the cheque was returned unpaid by the Bank. Thereafter, the Plaintiff Society issued a Legal Notice dated 15/06/2022 to the Defendant through Speed Post on 17/06/2022 but despite service of the Notice, the Defendant failed to make the payment within stipulated time period. 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 him on 30/04/2024. Ld. Counsel for Defendant had appeared on 08/05/2024 and had filed his memo of appearance. Thereafter, summons for judgment were issued to the Defendant which were served on him on 05/07/2024. Till date, the Defendant has not filed leave to defend.
4. The Defendant has not put his appearance as per Order XXXVII Rule 3 (1) within 10 days of receiving of summons or thereafter till date.
5. 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.
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6. The suit of the Plaintiff is based on cheque 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. Thus, Plaintiff is entitled to a decree in his favour in the sum of Rs. 1,62,577/-.
7. Coming now to the aspect of interest, although, Plaintiff has claimed the interest @ 21% 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.
8. 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. 1,62,577/- alongwith 9% p.a. interest from the date of institution of the suit till its realization from the Defendant. It is ordered accordingly.
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9. The Plaintiff is also awarded with the costs of the suit.
10. Decree sheet be prepared after the Plaintiff pays the requisite Court fees, if any. File be consigned to Record-Room, after due compliance.
Digitally signedAnnounced in the open Court NEETI by NEETI SURI MISHRA SURI on this 02nd day of September, 2024 Date:
2024.09.02 MISHRA 16:38:15 +0530 (NEETI SURI MISHRA) SCJ-CUM-RC NORTH DISTRICT, ROHINI COURT, DELHI It is certified that this judgment contains 05 pages Digitally signed by NEETI NEETI SURI and every page is signed by me. SURI MISHRA Date: 2024.09.02 MISHRA 16:38:27 +0530 (NEETI SURI MISHRA) SCJ-CUM-RC NORTH DISTRICT, ROHINI COURT, DELHI CS SCJ No. 1030/22 The Purvanchal Co-Op Urban T/C Society Ltd. Vs. Ramjan Ali Page 5 of 5