H S Oberoi & Ors. vs M/S. Dura Build Care Pvt Ltd
2018 Latest Caselaw 5569 Del

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*     IN THE HIGH COURT OF DELHI AT NEW DELHI
+     RFA 507/2018
H S OBEROI & ORS.                                         ..... Appellants
                          Through:     Mr. Ankit Jain and Mr. Siddharth
                                       Nath, Advocates. (9810737362)

                          versus

M/S. DURA BUILD CARE PVT LTD                              ..... Respondent

                          Through:     None.


CORAM:
HON'BLE MR. JUSTICE VALMIKI J. MEHTA
                  ORDER

% 13.09.2018

1. No one appears for the respondent. No one appeared for the

respondent on the last date on 10.8.2018. A limited notice was issued in this

appeal on the aspect of interest in terms of the order dated 6.7.2018 that the

rate of interest which was granted by the trial court is excessive as per

today's time.

2. Learned counsel for the appellants has placed reliance upon the

judgments of the Supreme Court in the cases of Rajendra Construction Co.

v. Maharashtra Housing & Area Development Authority and others, 2005

(6) SCC 678, McDermott International Inc. v. Burn Standard Co. Ltd. and others, 2006 (11) SCC 181, Rajasthan State Road Transport Corporation

v. Indag Rubber Ltd., (2006) 7 SCC 700, Krishna Bhagya Jala Nigam

Ltd. v. G.Harischandra, 2007 (2) SCC 720 & State of Rajasthan Vs. Ferro

Concrete Construction Pvt. Ltd (2009) 3 Arb. LR 140 (SC) that the high

interest rate regime now has gone and court should therefore grant rate of

interest under Section 34 CPC as per the present interest rate regime. It is

also argued that the interest at 18% is only provided under Section 80 of the

Negotiable Instrument Act if the cause of action is on the basis of

dishonoured cheque and in the present case there is no cause of action on the

basis of the dishonoured cheque but the suit which was decreed was on

account of supply of goods by the respondent/plaintiff to the

appellants/defendants which are construction care products.

3. In view of the arguments urged on behalf of the appellants, this

appeal is allowed and the impugned judgment of the trial court dated

22.7.2017 is modified that the pendente lite and future interest granted by

the trial court at 18% per annum is reduced to 9% per annum simple, and

which interest in any case will be payable pendente lite and future till

payment of the decretal amount by the appellants to the respondent/plaintiff.

4. The appeal is accordingly allowed and disposed of as stated above,

leaving the parties to bear their own costs.

VALMIKI J. MEHTA, J SEPTEMBER 13, 2018 ib