Karnataka High Court
M/S N. G. E. F. (H), vs M/S Swarngiri Wire Insulation Pvt. ... on 27 March, 2012
Author: S.Abdul Nazeer
Bench: S.Abdul Nazeer
IN THF HIGH COURT OF
1
K
\ K
ARN
A AT
ciRCUIT BEVUJ A T Df
f4R WID
BEFORE
TIlE lION 'BLE MR. JUST
iC E S. ABD (IL N4ZEER
CI VIL RE ViSION PETITI
ON NO.1103/2010
& MJSCCVLNOJII37S/20
10
Between:
M!s NGEF (H).
By its Managing Director.
P.B Road Rayapur.
Dharwad,
Petitioner.
(By Sri KI. Patil, Adv,) (common)
s Swarngirl Wire. Insulatio
n PH. 1. td
Registered company, by
its GPA Holder.
Sri MN. Prakash,
\oyj ab
ou 47 ars
0cc:. Business, rIo Plot No.10
.
U1J.yainnagar. Gokul Road.
Hubli.,
.. Resoondent.
common
This Civil Revision Petition is filed under Sect
ion 115 of
CPC against the judgment and decree dated
18.12010 in
RANo. 106/2007 on the file of the I AddI. Civi
l Judge (Sr,Dn) at
i-Iubli. etc.
Mise.CvLNo. 1113 75/2.010 is flied under Orde
r 4 1 Rule 5
read with Section 151 of CPC Or stay, etc
This Civil Revision Petition and Mise,Cvl, com
ing on for
Admission this day. the Court passed the follo
wing:
ORDER
The respondent herein had filed a sOt O.S.No.265/1 997 on the file of the Principal Civil Judge (Sr,Dn,), Huh ii, for recovery of a sum of ?20,279i towards interest on delay ed payment of the value of goods purchased by the defendant from the plaintiff. In the plaint, the plaintiff has also claimed interest at the rate of 24% on the aforesaid amount from the date of the suit till th.e date of reaiisatio n. The trial Court has: deer ed the suit on 7.7.2007. It has granted. 24% interest per annum on the suit a.mo unt from the date of' the. s•uit t.ii.l the date of realsation, Tl.c apne.al filed by the de.fendant in FLA.No, 106/2007 has be.en dismissed on I 8,2,2010 by the. I AddI. Civil Judge: ([St.Dnt Huhli. The tw.titioneridefèndant has .4 3 called in question the validity of the said judgment and decrees in this revision petition.
2. Learned Counsel for the petitioner con tends that the suit filed by the plaintiff was for recover y of interest for delayed payment of the purchase price of the goo ds. Therefore, the award of interest at the rate of 24% from the date of institution of the suit till the date of payment is excessive. It is further submitted that the award of interest pendente lite and post-de cree is discretionary with the Court. Having regard to Section 34 of the Code of Civil Procedure, the court below ought to hav e awarded interest not exceeding 6% per annum.
3. On the other hand, learned Counsel appearing for the respondent/plaintiff has sought to just ify the impugned judgment and decrees.
4. There is no challenge by the petitioner/d efen dant in so far as its liability to pay a sum of t20.279/-.
The only question for (I 4 consideration is whether the interest awarde d by the court below at the rate of 24% per annum from the date of the suit till the date of realisation is excessive? The award of inte rest pendente lite and post-decree is discretionary with the Cou rt as it is essentially governed by Section 34 of the Code of Civil Procedure de-horse the contract between the parties. The Con stitution Bench of the Apex Court in CENTRAL BANK OF IND IA VS. RA VINDRA & OTHERS AIR 2001 Sc 3095 has held
--
that in a given case if the Court finds that the principal sum adjudge d on the date of the suit the component of interest is disproportiona te with the component of the principal sum actually advanced, the Court may exercise its discretion in awarding interest penden te lite and post-decree interest at a lower rate or may even decline awarding such interest.
The Court has further held that the disc retion shall be exercised thirly, judiciously and for reasons and not in an arbitrary or fanciful manna.
5. In the present case, the suit was filed for recovery of interest in a sum of Z20,279/- towards dela yed payment of purchase 4 price of the value of goods. The court below has awarded interest at the rate of 242 d on the said sum from the date of the suit till the date of real isation, h is actually levy of interest on interest. Having regard to the facts and circum.stances of the case, I am of the view that the rate of interest awarded by the courts below is excessive. It is just and proper to award interest at the rate of 6% per annum on Z20,279; from the date of institution of suit till the date of realisation,
6. In the result, the revision petition succeeds and it is accordingly aOllowed in part. The respondent/plaintiff is entitled for recovery of a sum of 2O,2 79i from the petitioner/defendant.
The petitioner/defendant is I iabie to pay interest at the rate of 6% per annum on the aforesaid amount from the date 0 the suit till the date of realisation. The judgment and decrees impuaned herein are modified accordmelv.
b In tieui% of thi. dPbposal ci the re' ision petition as abtnt.
Nhsc CI %o 11 1l'5 '!O1O seeking ti does not sunne fri consideration. ft is acordmul> d'sinis'sc.. I \' iMs BM'i -