M/S Pioneer Publicity Corp. Pvt. ... vs M/S Vian Infrastructure Ltd.
2011 Latest Caselaw 6234 Del

         THE HIGH COURT OF DELHI AT NEW DELHI
%               Judgment Pronounced on: 19.12.2011
+ CS(OS) No. 60/2009

M/s Pioneer Publicity Corp. Pvt. Ltd.     ..... Plaintiff
                Through: Ms. Anjali Chopra, Advocate

                         versus

M/s Vian Infrastructure Ltd.                       ..... Defendant
                 Through: None
CORAM:-
HON'BLE MR JUSTICE V.K. JAIN

                       ORDER

%                       19.12.2011

V.K. JAIN, J. (ORAL)

1.          Vide      order   dated   14th   November,   2011,     the

defendant was granted leave to contest the suit subject to

its furnishing a bank guarantee or an FDR for a total sum of

Rs.1,59,49,965/- to the satisfaction of the concerned Joint

Registrar within three weeks. It has been reported by the

Registry that neither bank guarantee nor FDR in terms of

the order dated 14th November, 2011 has been filed by the

defendant. Since the defendant has failed to comply with

the condition subject to which leave to contest the suit was

granted to it, the leave is deemed to have been refused to

the defendant and the plaintiff is entitled to judgment

forthwith.

The principal amount claimed by the plaintiff is

Rs.1,59,49,965/-. The plaintiff is entitled to a decree for the

aforesaid amount. The plaintiff has also claimed interest

amounting to Rs.14,35,496/- at the rate of 12% per annum.

The case of the plaintiff is that it had sent a legal notice

dated 4th August, 2007 to the defendant, demanding the

aforesaid principal sum amounting to Rs. 1,59,49,965/-.

along with interest therein at the rate of 12% per annum.

The learned counsel for the plaintiff states that there is an

error in the notice and the correct principal sum is

Rs.1,59,49,956/-. Since the defendant failed to pay the

principal amount despite receipt of notice, interest can be

awarded to the plaintiff under Section 3 of Interest Act,

1971 which, inter alia, reads as under:-

"3. Power of court to allow interest-(i) In any proceedings for the recovery of any debt or damages or in any proceedings in which a claim for interest in respect of any debt or damages already paid is made, the court may, if it things fit, allow interest to the person entitled to the debt or damages or to the person making such claim, as the case may be, at a rate not exceeding the current rate of interest, for the whole or part of the following period, that is to say,-

(a) if the proceedings relate to a debt payable by virtue of a written instrument

at a certain time, then, from the date when the debt is payable to the date of institution of the proceedings;

(b) if the proceedings do not relate to any such debt, then, from the date mentioned in this regard in a written notice given by the person entitled or the person making the claim to the person liable that interest will be claimed, to the date of institution of the proceedings."

Considering the nature of transaction between the

parties, I am of the view that the plaintiff should be awarded

interest at the rate of 12% per annum upto the date of

institution of this suit. The learned counsel for the plaintiff

states that the amount claimed as interest has been

calculated from the date of the notice. The plaintiff,

therefore, is entitled to interest amounting to

Rs.14,35,496/-.

ORDER

For the reasons given in the preceding paragraphs, a

decree for Rs.1,78,85,461/- with costs and pendente lite

and future interest @ 12% per annum is hereby passed in

favour of the plaintiff and against the defendant.

Decree sheet be drawn accordingly.

(V.K. JAIN) JUDGE DECEMEBER 19, 2011 'sn'