Vayudoot Limited vs Shivalik Travels & Ors.
1999 Latest Caselaw 773 Del

Citation : 1999 Latest Caselaw 773 Del
Judgement Date : 2 September, 1999

Delhi High Court

Vayudoot Limited vs Shivalik Travels & Ors. on 2 September, 1999

Equivalent citations: 1999 VAD Delhi 462, 81 (1999) DLT 500

Author: V Sen

Bench: V Sen

ORDER

Vikramjit Sen, J.

1. Summons in the suit were eventually served upon the Defendants through publication in the Tribune dated 23.9.1997. It is also carried out by affixation as recorded in the order of the Joint Registrar (O) dated 8.1.1998. Appearance was not entered on behalf of Defendants as envisaged in Order xxxvII Rule 2(3) of the Code of Civil Procedure. As a consequence, in accordance with these provisions, the allegations in the plaint would be deemed to have been admitted and the plaintiff would thereupon be entitled to a decree for any sum, not exceeding the sum mentioned in the summons, together with interest at the rate specified, if any, up to the date of the decree and such sum for costs as may be determined by the Court. The suit should have been decreed at that very stage.

2. It appears that this position was not brought to the notice of the Court and therefore on 9.2.1998 instead of decreeing the suit under Order xxxvII Rule 2(3) ex parte orders were passed against the Defendants. The Plaintiff had been directed to file affidavits along with documents within four weeks, which orders have been complied with.

3. The suit is based on the dishonoured cheque dated 1.8.1991 for a sum of Rs.11,63,672/- drawn on Vijaya Bank, Sector 17D, Chandigarh, original of which is Exhibit P-3. At the time of arguments learned counsel for the plaintiff was unable to show the justification for the claim of interest at the rate of 24% per annum and fairly conceded that the Court may award interest at its discretion. He, however, submitted that this was a commercial transaction and that even if interest is not awarded at the rate of 24% per annum, it should be awarded at the rate of 18% per annum. This submission is accepted by me.

4. The suit is decreed for a sum of Rs.11,63,672/- together with interest thereon at the rate of 18% per annum with effect from 8.8.1991 till the realisation of the decretal amount. The Plaintiff shall also be entitled to costs of the suit.

5. Decree sheet be drawn up accordingly.