Narang International Hotels Ltd. vs M/S. Swati Enterprises
2009 Latest Caselaw 3652 Del

                                                   REPORTABLE

*    IN THE HIGH COURT OF DELHI AT NEW DELHI

+                      RFA 547/2000

                       Date of Decision: September 9, 2009

     NARANG INTERNATIONAL HOTELS LTD.            ..... Appellant
                  Through Mr. Abhinav Vashisht with Mr. Sumit
                  Singh Benipal, Advocate for appellant.

                 versus

     M/S. SWATI ENTERPRISES                          ..... Respondent
                   Through None.

     CORAM:
     HON'BLE MISS JUSTICE REKHA SHARMA



1.   Whether the reporters of local papers may be allowed to see the
     judgment? Yes
2.   To be referred to the reporter or not? Yes
3.   Whether the judgment should be reported in the 'Digest'? Yes


REKHA SHARMA, J. (ORAL)

This appeal has been preferred against the judgment and decree

passed by an Additional District Judge dated July 21, 2000 holding

the respondent entitled to a sum of Rs.1,26,771.27P with interest at

the rate of 18% per annum.

The respondent had made a claim of Rs.1,62,262.15P before the

trial Court out of which Rs.1,26,771.27P was towards the principal

amount and the balance towards the interest calculated on the

principal amount at the rate of 24% per annum.

The appellant has assailed the aforementioned judgment and

decree on the submission that it was entitled to a discount of 40% on the principal amount claimed by the respondent on the strength of

document Ext.PW1/D1. Before I deal with the submission it will be

appropriate to refer to the document which reads as under:-

"To, The General Manager, The Ambassador's Sky Chef I.G.I. Air Port, Palam Gurgaon Road, New Delhi-110037.

Sub: Outstanding payment.

Dear Sir,

As requested by your management we hereby agree for discounting the parcel of 40% on the prices of supplies made by us which is pending for payment as on date.

Thanking you,

For Swati Enterprises, Sd/-

Partner."

The trial Court in the impugned judgment has declined to place

reliance on ExtPW1/D1 on the ground that the appellant was entitled

to rebate in terms thereof only if it had made payment of the

outstanding dues within seven days.

It is contended by learned counsel for the appellant that the

document Ext.PW1/D1 is completely silent with regard to the time

period by which the outstanding payment was to be made and one

therefore fails to comprehend on what basis the trial Court has held

that the document contemplated payment of outstanding dues to be

made within seven days.

I have perused the document Ext.PW1/D1 and I find myself fully

in accord with the submission of learned counsel for the appellant

that Ext.PW1/D1 says nothing about the period within which the

outstanding payment was to be made. It simply says that the

management has agreed to give discount of 40% on price of supplies

made, which is pending for payment. I do find from the record that

respondent led oral evidence to show that Ex. PW-1/D-1 contemplated

discount of 40% if only the outstanding payment was made within 7

days of the receipt of communication but such oral evidence in my

view is of no consequence. The document has to be read as it stands.

No oral evidence can be looked into to prove the contents of a

document when the document itself is available on the record. As

already noticed above Ext.PW1/D1 does not say that the discount of

40% was available to the appellant only if he made payment within

seven days of the receipt of communication.

In view of the above, I hold that the trial Court fell into error by

not giving discount of 40% to the appellant on the strength of

Ex. PW-1/D-1.

The trial Court in the operative part of its judgment has

awarded a sum of Rs.1,26,771.27P in favour of the respondent with

interest at the rate of 18% per annum from May 1992 to

August, 1993 and pendente lite and future interest at the rate of 18%

per annum till realisation.

It is submitted by learned counsel for the appellant that the

interest awarded is on the higher side and in any case, the respondent was entitled to interest from the date it had sent legal notice to the

appellant demanding payment of the outstanding amount and not

from any date prior to that date. The legal notice as per the record

was sent on May 22, 1993. I find force in this submission of the

counsel as well. Hence I hold that the respondent shall be entitled to a

discount of 40% on the sum of Rs.1,26,771.27P in terms of

Ex.PW-1/D-1 and shall also be entitled to interest from the date of the

notice i.e, May 22, 1993 at the rate of 9% per annum. The respondent

shall also be entitled to interest at the same rate from the date of the

filing of the suit, till the date of deposit of the decretal amount in this

Court.

The appeal is allowed to the aforementioned extent. The

Registry shall draw up modified decree in terms of what has been held

above. The appellant shall be at liberty to seek refund of the amount

which has become payable to it in view of the order as modified.

The appeal is disposed of.

REKHA SHARMA, J.

SEPTEMBER 9, 2009 HL