Hindustan Appliances And Anr. vs K.L. Shroof And Anr.
2001 Latest Caselaw 145 Del

JUDGMENT

S.K. Mahajan, J.

Admit.

1. With the consent of parties the matter has been heard and is being disposed of finally.

2. By the impugned order the Trial Court passed a decree under the provision or Order 37 of the Code of Civil Procedure against the petitioner. The decree was to carry interest @ 30% per annum. The petitioner filed an application under Order 37 Rule 4, CPC for setting aside the decree. This application was dismissed on 20.10.2000. Being aggrieved by this order dismissing the application under Order 37, Rule 4 the present revision petition has been filed by the petitioner.

3. On 29.11.2000, when the matter came up for hearing before the Court, the Court was of the opinion that the only point which required to be considered in the petitioner was the rate of interest. I have, therefore, heard learned Counsel for the parties only on the question as to what should be the rate of interest payable on the decretal amount.

4. In a recent judgment of the Supreme Court reported as Smt. Kaushnuma Begaum and Others v. The New India Assurance Company Limited, JT 2001 (1) SC 375, it has been held that with the change in economy and policy of the Reserve Bank of India, the interest rate has been lowered. the nationalised Banks were now granting interest at the rate of 9% on fixed deposits for one year. The Court, therefore, directed that the amount of the compensation awarded to the petitioner shall carry interest at the rate of 9% per annum from the date of Award. Since it was a claim under the provisions of Motor Vehicles Act, in my view, the same may not be strictly applicable to a commercial transaction between the parties. However, the rate of interest claimed by the respondent at 30% is highly exorbitant and excessive. In may view the ends of justice will be met in case the petitioner is directed to pay the decretal amount along with simple interest payable at the rate of 15% per annum.

5. I, accordingly, modify the decree of the Trial Court to the extent that the respondent/decree-holder will be entitled to interest on the decretal amount at the rate of 15% per annum. With these observations the petition stands disposed of.

6. petition disposed of.