ASSOCIATED SWICHGEAR & PROJECTS LTD Vs. HIND ELECTRICIAN

JUDGEMENT

(1.) This Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908 (CPC), is filed by the defendant in the suit impugning the Judgment of the Trial Court dated 20.07.2006 whereby the trial court has decreed the suit for a sum of Rs. 3,45,004.12 along with interest at 12% per annum from February 1995 till the institution of the suit and thereafter at 8% per annum pendente lite and future till realisation of the decretal amount. The suit amount was claimed on account of supply of cables by the respondent/plaintiff to the appellant/defendant.

(2.) The learned counsel for the appellant/defendant only argues the appeal for reduction of the high rate of interest granted by the impugned judgment at 12% per annum and 8% per annum pendente lite, by placing reliance on the judgments of the Hon'ble Supreme Court which hold that since the interest regime has come down, courts must not grant a high rate of interest. These judgments of the Supreme Court which are relied upon are 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 Reddy, (2007) 2 SCC 720 & State of Rajasthan v. Ferro Concrete Construction Pvt. Ltd, (2009) 12 SCC 1.

(3.) It is also argued that this Court has ample power under Section 34 CPC to grant reasonable rate of interest pendente lite and in the facts of the present case, taken along with the language of Section 34 CPC, interest at 6% per annum should suffice because the appellant has already deposited the principal amount of Rs. 3,45,000/- in this Court in terms of orders passed in this RFA.