Delhi High Court
Dr. Gurbachan Singh Awla vs Delhi State Industrial ... on 1 February, 2011
Author: Valmiki J. Mehta
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ RFA No.77/2001
% 1st February, 2011
Dr. Gurbachan Singh Awla
S/o Shri Kundan Singh,
R/o F-119, East of Kailash,
New Delhi-110065 ...... Appellant
Through: None
VERSUS
Delhi State Industrial Development
Corporation Ltd. having its registered office at
A/3-4, State Emporia Building,
Baba Kharak Singh Marg,
New Delhi-110001
And having its Head Office at
Bombay Life Building,
N-36, Connaught Circus,
New Delhi-110001. ... Respondent
Through: Dr. S. L. Gupta, Attorney and
husband of respondent and Dr. (Mrs.) Nisha
Ravi Gupta.
CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA
1. Whether the Reporters of local papers may be
allowed to see the judgment?
2. To be referred to the Reporter or not?
3. Whether the judgment should be reported in the Digest?
VALMIKI J. MEHTA, J (ORAL)
1. This case is on the Regular Board of this Court since 3.1.2011. No one
appears for the parties although it is 11.45 a.m. This case is effective item
RFA No.77/2001 Page 1 of 3
no.11 on the Regular Board of this court today. I have therefore perused the
record and I am proceeding to dispose of the matter.
2. The challenge by means of this regular first appeal under Section 96
CPC read with Section 38 of Punjab Courts Act, 1918 is to the impugned
judgment and decree dated 24.11.2000 whereby suit for recovery of the
respondent/Delhi State Industrial Development Corpn. Ltd. was decreed.
3. The facts of the case are that the appellant/defendant took a loan of
Rs.53,450/- from the respondent as margin money required to give to his
bank for sanctioning limits for running industry/business. The
appellant/defendant executed a mortgage bond in favour of the plaintiff on
5.2.1976 undertaking to pay the mortgage amount along with interest @
2.5% per annum. Though the appellant/defendant in his pleading denied
having taken the loan, however, in the cross-examination he admitted that
he had indeed applied to respondent/plaintiff for margin money so that he
can get money from the bank. The appellant/defendant also admitted that
loan was taken by him and which was repayable in two installments. The trial
court has considered the mortgage bond which was exhibited as Ex.PW2/4
and also other documents including the legal notice Ex.PW2/6 issued to the
appellant on his failure to pay the loan amount with interest.
4. The main issue which was argued before the trial court was that the
rate of interest ought to be only 2.5% per annum and not 21% per annum. It
was argued on behalf of the appellant that the rate of interest is stated to be
2.5% per annum in the original period which was to expire on payment of the
second installment, however, even if there is a default, the
RFA No.77/2001 Page 2 of 3
respondent/plaintiff was entitled only to the normal rate of 2.5% per annum
and not commercial rate of interest being 21% per annum.
4. The trial court has relied upon a decision of this court in the case of
Delhi State Industrial Development Corporation Vs. Anil Kashyap
reported in 56(1994) Delhi Law Times 637 in which in similar facts it
was held that the right to claim concession ceases when once there is
default in repayment of the loan beyond the prescribed period, and for the
period beyond the contractual period commercial interest can be charged. I
do not find any illegality or perversity in the findings of the trial court. After
all the appellant/defendant was liable to pay the loan. It cannot mean that
even beyond the contractual period, the appellant is only liable to pay a
concessional contractual interest @ 2.5%. This court would not interfere in
the findings of the trial court merely because two views are possible, unless
the view taken by the trial court is illegal or cause great injustice, I do not
find that justice requires interfering with the impugned judgment/decree.
The appeal is therefore dismissed leaving the parties to bear their own
costs. Trial court record be sent back.
FEBRUARY 1, 2011 VALMIKI J. MEHTA, J.
vld
