SHRENIK JHAVERI Vs. A K MENON

JUDGEMENT

(1.) No order on IA No. 2.

(2.) The appeal is taken on board.

(3.) On 14/9/1995 while issuing notice we stated that the only question which we would be inclined to consider is in regard to the rate of interest exceeding 15%. The facts reveal that the parties arrived at a settlement insofar as the dues were concerned and the terms of the settlement were reduced to writing. The question regarding the rate of interest was left open to be decided by the learned Judge of the Special court. The learned Judge, for reasons stated in his order, determined the rate of interest at 30% from the date of the petition till the date of payment or realisation. However, while doing so in paragraph I of his order he stated that notwithstanding the fact that he was mentioning the rate of interest as a part of the consent terms he would leave the right to appeal to the first respondent on the question of interest. In determining the rate of interest, the learned Judge took into consideration the fact that the appellant herein was not required to pay interest on the amount determined under the consent terms for a period ofalmost three years which amount would come to around 8 to 9 crores of rupees and also because the conduct of the appellant was such that he was not entitled to any liberal term insofar as the rate of interest was concerned. There are certain other observations in the order which let the learned Judge to conclude that the high rate of interest was called for and accordingly he stipulated 30% from the date of the petition till payment or realisation.