Davinder Singh vs Parveen Kumar

R. Banumathi, J

Leave granted.

Being aggrieved by the judgment and order passed by the High Court of Punjab and Haryana at Chandigarh in RSA No. 3325 of 2011 dated 24.01.2019 in and by which the High Court has affirmed the decree passed by the First Appellate Court directing the appellant-defendant to pay the suit claim of Rs. 5,87,146/- (Rs.2,98,000/- as principal amount plus Rs. 2,89,146/- as interest @ 2% p.m. with half yearly rests) and the future interest at the rate of 6% p.a.

The defendant is the appellant. The respondent-plaintiff has filed the suit against the appellant for recovery of Rs. 5,87,146/- (Rs.2,98,000/- as principal amount plus Rs. 2,89,146/- as interest @ 2% p.m. with half yearly rests). The respondent-defendant is the sole proprietor of the firm which was carrying business of Commission Agents. The case of the respondent is that the respondent makes advances to the respective customers, agriculturists and farmers for their need and necessity and every transaction done by the respondent's firm is reduced into writing and also in the account books of the respondent's firm. The respondent-plaintiff has averred that the appellant had received a sum of Rs.2,98,000/- in cash on 18.05.1999 from the respondent and in token of having received the said amount, the appellant has put his signature on a voucher/Ex.P-1. It is further averred that though the appellant assured to sell his crops to the respondent, he did not adhere to his promise. The respondent further averred that the appellant neither paid the amount towards the principal amount nor the interest accrued thereon nor supplied the crops. Therefore, the respondent has filed the suit for recovery of the principal amount of Rs.2,98,000/- plus Rs. 2,89,146/- as interest claiming @ 2% p.m. with half yearly rests.

Upon consideration of the evidence adduced by the parties, the Trial Court dismissed the suit filed by the respondent by the judgment dated 21.08.2009.

Being aggrieved, the respondent-plaintiff filed the appeal before the First Appellate Court. Taking note of the evidence of PW-2 who deposed regarding advancement of loan to the appellant and also the evidence of PW-3 (Accountant in the respondent's firm) and pointing out the absence of pleadings in the written statement regarding Ex.P-1 voucher. The Court allowed the appeal and decreed the suit for recovery of Rs.2,98,000/- along with interest at the rate of 12% p.a. from the date of advancement of amount till its disposal by the Trial Court and future interest @ 6% p.a. till realization of the decretal amount. The second appeal filed by the appellant was dismissed by the High Court. Being aggrieved, the appellant-defendant has preferred this appeal.

We have heard Mr. Karan Dewan, learned counsel for the appellant as well as Ms. Koshima Gumber, learned counsel appearing on behalf of the respondent.

As pointed out by the First Appellate Court, PW-2 has spoken about the amount advanced to the appellant and PW-3 (Accountant) has supported the evidence of PW-2. That apart it has also taken note that the appellant had admitted his signature in PW-1 voucher. Considering the evidence of PWs-2 and 3 and also the admission of the appellant of his signature, the First Appellate Court rightly decreed the suit for the Principal amount of Rs.2,98,000/-. Considering the concurrent findings, we do not find any substantial ground warranting interference with the judgment and decree passed by the Courts insofar as the principal amount is concerned.

Insofar as the interest in concerned, the First Appellate Court has held that the principal amount of Rs.,2,98,000/- is payable with interest at the rate of 12% p.a. from the date of advancement of the amount till its disposal by the Trial Court and future interest at the rate of 6% p.a. till the date of realization of the decretal amount. Admittedly the respondent being Commission Agent has advanced loan amount for supply of crop by the appellant who is a farmer.

Considering the nature of transaction, we are of the view that the interest claimed by the respondent-plaintiff at the rate of 2% per month with half yearly rests is very much on the higher side. Likewise interest awarded by the First Appellate Court at the rate of 12% per annum also appears to be on the higher side. Furthermore there is no written document between the parties for the interest payable on the amount.

Considering the nature of transaction and the time spent by the parties over the years and the interest of justice would be met by directing amount of Rs. 2,98,000/-with simple interest at the rate of 6% p.a. from 18.05.1999. The decree passed by the First Appellate Court dated 17th March, 2011 affirmed by the High Court is modified.

The appellant is directed to pay the principal amount of Rs. 2,98,000/- with simple interest at the rate of 6% p.a. from 18.05.1999 till the date of realization within a period of three months from today, failing which the principal amount along with accrued interest shall carry future interest at the rate of 9% p.a. after expiry of three months. The impugned judgment shall stand modified accordingly and the appeal is partly allowed. No costs.