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Madhya Pradesh High Court · body

2000 DIGILAW 974 (MP)

Juharmal Jhamaklal v. Mahaveer Cloth and General Merchant

2000-09-05

A.M.SAPRE

body2000
Short Note Defendant has felt aggrieved and filed first appeal under section 96 of CP Code challenging the judgment and decree rendered on 14.2.1991, by learned IInd Additional District Judge, Ratlam, in Civil Suit No. 17-B/1986. Facts in brief are these. On the strength of five receipts executed by defendant in favour of plaintiff, a suit was brought for recovery of Rs. 21,368.80 paise. These receipts are 12.12.1983, for Rs. 5.000/- (Ex. P-4). 14.12.1983 for Rs. 4,000/- (Ex. P-5), 22.12.1983 for Rs. 1,500/- (Ex. P-6), 25.01.1984 for Rs. 3,000/- (Ex. P-7) and 21.2.1984 for Rs. 1,000/- (Ex. P-8); totaling Rs. 14,500/-. The suit was filed on the assertion that the plaintiff had advanced loan to defendant and lieu thereof got these receipts executed to secure the loan. When demanded by plaintiff on 28.7.1986 (Ex. P-9), defendant refused to pay and hence the suit was filed on 29.9.1986 for recovery of Rs. 21.368.80 paise as referred supra, In support, the plaintiff filed the aforementioned five receipts and his account books which had the entries of this payment. These entries were made in his regular books of account. An interest was claimed at the rate of Rs. 1.35 upto the date of suit and thereafter in terms of section 34 till recovery. The defence was that of denial in substance. Parties led evidence in trial on the issues framed, Eventually by impugned judgment, the trial Court decreed the suit in favour of plaintiff. While doing so, it was held that plaintiff is entitled to claim interest at the rate of Rs. 1.35 on the decreed principal sum upto the date of suit and then at the rate of 6% from the date of suit till realisation. It is this decree which is impugned by the defendant in this appeal. Heard Shri Manish Jain, learned counsel for the appellant and Shri N.S. Purohit, learned counsel for the respondent. The only argument that was raised in support of appeal by the learned counsel for the appellant was regarding imposition of interest and its rate, According to learned counsel. what was excessive was the award of interest at the rate of 6% from the date of filing of suit till realisation under section 34 ibid. Learned counsel for the respondent (plaintiff) supported the judgment/decree in its entirety. what was excessive was the award of interest at the rate of 6% from the date of filing of suit till realisation under section 34 ibid. Learned counsel for the respondent (plaintiff) supported the judgment/decree in its entirety. Having seen and perused the entire record in the context of argument urged by the learned counsel for the appellant, I have come to a conclusion that it has no substance. Grant of interest pendent lite is governed by section 34 of CP Code on the conditions provided therein. The learned trial Judge has not in fact awarded interest at the same rate pendent lite which he had awarded upto the date of suit. The grant of interest upto the date of suit is not governed by section 34 ibid but it is governed by contract inter se parties. The Court, while awarding interest under section 34, can also award interest at the same rate which was contracted for provided it has a commercial element. It is, however, a matter of discretion. In the present case the Court awarded interest at the contracted rate of Rs. 1.35 upto the date of suit and then while exercising the powers under section 34, awarded lesser rate of interest at the rate of 6%. I do not find any illegality in awarding interest at the rate of 6% pendent lite. Indeed it is reasonable and is awarded keeping in view the requirement of section 34. ibid, Admittedly, the loan was taken by defendant on the basis of the receipts and were accordingly executed. Admittedly the defendant utilized the money lent by the plaintiff to defendant. The use of word 'admittedly' is used by me because now in this appeal, the defendant has given up the challenge to the merits of the controversy and has confined his challenge to award of pendent lite interest. In my opinion, therefore, taking into account the entire factual controversy, the nature of evidence led, the award of interest at the rate of 6% from the date of suit till realisation with the aid of section 34 is justified and accordingly upheld. Appeal as a result fails and is dismissed, In view of facts/circumstances emerging from the record, no cost.