CIMMCO LIMITED Vs. PRAMOD KRISHNA AGRAWAL

JUDGEMENT

(1.) This Regular First Appeal under Sec. 96 of the Code of Civil Procedure, 1908 (CPC) is filed by the appellant/defendant impugning the Judgment of the trial court dated 11.01.2013 by which the trial court has decreed the suit filed by the respondent/plaintiff for an amount of Rs. 11,48,532.00 along with pendente lite and future interest at 12% per annum.

(2.) Out of the suit amount of Rs. 11,48,532.00, the principal amount is only a sum of Rs. 3,48,870.00, and the same becomes clear from para 5 of the impugned judgment. Therefore, the difference of Rs. 11,48,532.00 and Rs. 3,48,870.00 is the claim towards pre-suit interest, which is a huge amount of Rs. 7,99,662.00, as compared to the principal amount of Rs. 3,48,870.00. The rate of interest as per the respondent/plaintiff works out to be approximately 12% per annum, but the Ld. counsel for the appellant/defendant rightly points out that as per calculation, the rate of interest cannot be 12% per annum, and if the rate of interest was 12% per annum then this difference of amount could not be Rs. 7,99,662.00 but a lower amount.

(3.) The Ld. counsel for the appellant/defendant argues that since there is consistent fall in the rate of interest, the Honourable Supreme Court has now mandated that lower rates of interest be granted and therefore the pre-suit and also the pendente lite and future interest is liable to be reduced by this Court. Reliance is placed upon the judgments in the cases of Rajendra Construction Co. Vs. Maharashtra Housing & Area Development Authority and others, 2005 6 SCC 678, McDermott International Inc. Vs. Burn Standard Co. Ltd. and others, 2006 11 SCC 181, Rajasthan State Road Transport Corporation Vs. Indag Rubber Ltd., 2006 7 SCC 700, Krishna Bhagya Jala Nigam Ltd. Vs. G.Harischandra, 2007 2 SCC 720 & State of Rajasthan Vs. Ferro Concrete Construction Pvt. Ltd, 2009 3 ArbLR 140 (SC).