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2011 DIGILAW 1025 (DEL)

AIRPORT AUTHORITY OF INDIA v. SANJAY BHARGAVA

2011-12-01

VALMIKI J.MEHTA

body2011
JUDGMENT VALMIKI J. MEHTA, J (ORAL) 1. The challenge by means of this Regular First Appeal (RFA) filed under Section 96 Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the Trial Court dated 11.10.2002 which decreed the suit for recovery of monies filed by the respondent / plaintiff. The monies which are/were claimed are in fact towards interest for delaying payment of the principal amount. The principal amount was paid with respect to terry wool suiting supplied by the respondent / plaintiff to the appellant / defendant. 2. The impugned judgment refers to the clause in the bills / invoices which were issued by the respondent / plaintiff which provided that in case of delay in payment, interest will be chargeable at 21% per annum. The Trial Court has held that in view of this clause in the invoice, the respondent / plaintiff was entitled to interest. 3. During the course of hearing, I pointed out to the counsel for the parties the Division Bench judgment of this Court in the case of Pandit Munshi Ram Associates v. DDA, 2010 (9) AD (Delhi) 313 wherein a Division Bench of this Court has said that a court may interfere with respect to high rates of interest which are claimed even for the pre-suit period. The Supreme Court also in the recent chain of judgments reported as Rajendra Construction Co. v. Maharashtra Housing & Area Development Authority and others, 2005 (6) SCC 678 , McDermott International Inc. v. Burn Standard Co. Ltd. and others, 2006 (11) SCC 181 , Rajasthan State Road Transport Corporation v. Indag Rubber Ltd., (2006) 7 SCC 700 , Krishna Bhagya Jala Nigam Ltd. v. G.Harischandra, 2007 (2) SCC 720 & State of Rajasthan Vs. Ferro Concrete Construction Pvt. Ltd (2009) 3 Arb. LR 140 (SC) has said that the courts, in view of the changed economic scenario and the consistent fall of rate of interest, must reduce the pendente lite and future interest, more so when litigation remains pending for a long time. 4. In view of the aforesaid position of law during the course of hearing, counsel for both the parties have agreed that the appeal can be disposed of by passing a decree in favour of the respondent / plaintiff for pre-suit interest at 12% per annum simple and pendente lite and future interest at 9% per annum simple. 4. In view of the aforesaid position of law during the course of hearing, counsel for both the parties have agreed that the appeal can be disposed of by passing a decree in favour of the respondent / plaintiff for pre-suit interest at 12% per annum simple and pendente lite and future interest at 9% per annum simple. The suit of the respondent / plaintiff, therefore, will stand decreed for `2,12,916/-. The respondent / plaintiff will also be entitled to pendente lite and future interest at 9% per annum simple on this amount. It is also agreed that the appellant will pay the due amount, and which is stated to be a sum of ` 4,73,374/- as on date, within a period of two months from today, failing which, the appellant / defendant will be liable to pay even the pendente lite and future interest at 12% per annum simple. The respondent / plaintiff will also be entitled to the court fees which have been paid for the suit. 5. Appeal is, therefore, partly allowed and disposed of by passing a decree in favour of the respondent / plaintiff and against the appellant / defendant for ` 2,12,916/- with pendente lite and future interest at 9% per annum simple provided that the appellant / defendant pays a sum of `4,73,374/- within a period of two months from today along with court fees amounting to `6,004/- failing which, the pendente lite and future interest will be at 12% per annum simple. 6. Decree sheet be prepared. Trial court record be sent back. 7. Appellant has given a bank guarantee as a security for the decretal amount. The bank guarantee given by the Appellant will be discharged and returned to the appellant only upon the appellant making payment to the respondent / plaintiff in terms of today’s judgment. 8. Appeal is disposed of accordingly.