Judgment 1. These two memorandum of civil revisions are directed against the Judgment and Decree dated 25.03.2004 and made in C.M.A.No.21 of 2001, on the file of the learned Principal District Judge, Erode. 2. The background facts: 2.1. The revision petitioner herein is the proprietor of M/s. Sri Arulmurugan Traders. He had entered into an agreement with the second respondent, The Special Officer, Dharapuram Agricultural Producers Co-operative Marketing Society, Dharapuram and thereby agreed to supply rice bran, sun-flower seeds, oil cake and maise for the purpose of manufacturing animal feeds at Chennai, Chengalpattu M.G.R. District Milk Producers Co-operative Society. 2.2. As per the agreement, the revision petitioner had to supply the raw-materials for manufacturing animal feeds to the second respondent Co-operative Society. Since there was a shortage in weight in the raw-materials supplied, the second respondent happened to receive a lesser price from the purchasers and on account of this reason, the second respondent Co-operative Society had to suffer a loss of Rs.4,15,165.90, which is to be reimbursed by the revision petitioner. Therefore, claiming a sum of Rs.7,36,355.04, which includes the interest, the second respondent Co-operative Society had filed a claim before the first respondent viz., the Deputy Registrar of Cooperative Societies, Erode against the revision petitioner as well as the third respondent Mr. K. Perumalsamy, the then Special Officer/Co-operative Sub-Registrar, Dharapuram Agricultural Producers Co-operative Marketing Society, Dharapuram. 2.3. After hearing both sides, the first respondent herein had passed an Award on 23.03.1998 with a finding that the revision petitioner is liable to pay the second respondent Co-operative Society a sum of Rs.4,15,165.90 along with interest to the extent of Rs.3,21,143.14 with costs of Rs.46/-. 2.4. Accordingly, the first respondent had directed the revision petitioner to pay a sum of Rs.7,36,355.04 to the second respondent Co-operative Society with interest at the rate of 21% per annum from 19.03.1998 till the date of payment. 2.5. Being aggrieved by the Award dated 23.03.1998 and also questioning the calculation of interest at the rate of 21% p.a., on the award amount, the revision petitioner had preferred a civil miscellaneous appeal in C.M.A.No.21 of 2001, under Section 152(1) of the Tamil Nadu Co-operative Societies Act, 1983, on the file of the learned Principal District Judge, Erode. 2.6. 2.5. Being aggrieved by the Award dated 23.03.1998 and also questioning the calculation of interest at the rate of 21% p.a., on the award amount, the revision petitioner had preferred a civil miscellaneous appeal in C.M.A.No.21 of 2001, under Section 152(1) of the Tamil Nadu Co-operative Societies Act, 1983, on the file of the learned Principal District Judge, Erode. 2.6. After hearing both sides, the learned Principal District Judge, Erode, on 25.03.2004, had allowed the appeal partly holding that the revision petitioner is liable to pay a sum of Rs.7,36,355.04 to the second respondent as awarded by the Arbitrator in Suit No.1041 of 1996-97. But, in so far as the interest is concerned, he had modified the rate of interest to the effect that the appellant had to pay the subsequent interest from the date of Award viz., from 23.03.1998 till the date of payment at the rate of 6% per annum. 2.7. Being dissatisfied with the Judgment and Decree dated 25.03.2004, the revision petitioner being the appellant in C.M.A.No.21 of 2001 has approached this Court by way of this memorandum of civil revision. 3. When the revision petition came up for hearing, the first and third respondents herein have not chosen to appear despite the service of notice on them and therefore they were called absent. 4. Mr. P. Srinivas, learned counsel appearing for the petitioner has based his arguments only on the calculation of interest at the rate of 21% per annum on the amount of Rs.4,15,165.90 ie., as on 18.03.1998 at the rate of 21% per annum a sum of Rs.3,21,143.14 has been calculated towards interest. Adding this amount with the actual due i.e., Rs.4,15,165.90+Rs.46 towards costs, the award was passed to the extent of Rs.7,36,355.04 with subsequent interest at the rate of 21% per annum from the date of award till the date of payment. This was vehemently questioned by Mr. P. Srinivas, learned counsel, saying that the calculation of interest at the rate of 21% per annum is arbitrary as there was no privity of contract with regard to the interest at the rate of 21% between the second respondent Co-operative Society and the revision petitioner. 5. Mr. T.S. Rajamohan, learned counsel appearing for R2 has also fairly agreed that the revision petitioner never agreed to pay the interest at the rate of 21% per annum. 5. Mr. T.S. Rajamohan, learned counsel appearing for R2 has also fairly agreed that the revision petitioner never agreed to pay the interest at the rate of 21% per annum. However, since the transaction between the revision petitioner and the second respondent Co-operative Society was in the nature of commercial transaction, the second respondent Co-operative Society happened to calculate the interest at the rate of 21% per annum. 6. It is obvious to note here that the interest at the rate of 21% per annum is not an agreed rate of interest. 7. Mr. P. Srinivas, learned counsel appearing for the petitioner has not disputed the actual due of Rs.4,15,165.90. He has also produced a memo of calculation saying that: "Principal Amount : Rs.4,15,165/- (As per conditional Order Rs.2,00,000/-(Rupees two lakhs only) was paid to the second respondent Society. This is to be adjusted towards the interest due as on 2007.)" 8. As it appear from the records, the first demand was made on 26.08.1995 and a claim was made for the first time before the first respondent on 28.05.1996. 9. In this connection, Mr. P. Srinivas, has argued that in the absence of any privity of contract between the revision petitioner and the second respondent Co-operative Society, with regard to the interest at the rate of 21% per annum, in the interests of justice, it might be better to calculate the interest at the rate of 15% per annum from 26.08.1995 i.e., from the date of first demand till the date of filing of claim ie., till 28.05.1996. 10. According to Mr. P. Srinivas, learned counsel, from 26.08.1995 to 28.05.1996 the interest at the rate of 15% on Rs.4,15,165/- comes to Rs.46,706/-. From 28.05.1996, the interest has to be calculated on Rs.4,15,165/- at the rate of 6% till 28.01.2013. 11. From 28.05.1996 till 28.05.2012 i.e., for 16 years, the interest on Rs.4,15,165/-at the rate of 6% per annum comes to Rs.3,98,558/-and from 28.05.2012 till 28.01.2013 i.e., for 8 months, the interest on Rs.4,15,165/-at the rate of 6% per annum comes to Rs.14,530/- and therefore the total amount comes to Rs.8,74,959/-. 12. Mr. P. Srinivas, has submitted that a sum of Rs.2,00,000/-was already paid in pursuant to the conditional Order dated 28.02.2007 passed by this Court. After deducting this amount, the remaining balance would be Rs.6,74,959/-. 13. 12. Mr. P. Srinivas, has submitted that a sum of Rs.2,00,000/-was already paid in pursuant to the conditional Order dated 28.02.2007 passed by this Court. After deducting this amount, the remaining balance would be Rs.6,74,959/-. 13. Therefore, the revision petitioner is directed to pay a sum of Rs.6,74,959/-to the second respondent Co-operative Society along with interest at the rate of 6% per annum from 29.01.2013 till the date of payment. 14. Accordingly, this revision petition is allowed. Consequently, connected miscellaneous petition is closed. No costs.