RAJESH KUMAR Vs. PARASMAL

JUDGEMENT

(1.) The present appeal has been filed by the appellant-defendant challenging the judgment and decree dated 13.08.2012 passed by the Additional District & Session Judge, Beawar, District Ajmer (hereinafter referred to as 'the appellate court') in Civil First Appeal No. 04/2010, whereby the appellate court has confirmed the judgment and decree dated 31.10.2009 passed by the Civil Judge (Senior Division) Beawar (hereinafter referred to as 'the trial court') in Civil Suit No. 49/2005.

(2.) The respondent-plaintiff had filed the suit seeking recovery of L 32,000/- from the appellant-defendant alleging, inter alia, that the appellant-defendant had borrowed L 10,000/- on 18.09.2002 as he was in need of the money for his business. According to the respondent, the appellant had also executed a receipt in this regard and agreed to pay interest @ 2% per month. Since the appellant did not pay the said amount, the suit was filed. The suit was registered by the appellant-defendant denying the allegations levelled against him and further contending, inter alia, that the appellant had already paid L 4800/- to the respondent, which was not deducted from the claimed amount. The trial court, vide the judgment and decree dated 31.10.2009, decreed the suit of the respondent-plaintiff, directing the appellant-defendant to pay L 32,000/- with interest @ 2% per month. Being aggrieved by the aforesaid, the appellant-defendant had preferred the appeal before the appellate court, which also came to be dismissed vide the impugned judgment and decree dated 30.08.2012.

(3.) The appeal was admitted on the question as to whether the courts below were justified in awarding the interest @ 2% p.m. on the principal amount. After having heard the learned counsels for the parties, and perusing the judgments and decrees passed by the courts below, it appears that the appellant-defendant was directed to pay L 32,000/- to the respondent-plaintiff with interest @ 2% per month from the date of suit till realisation. There being concurrent findings of facts recorded by both the courts below, this Court is not inclined to interfere with the direction with regard to the payment of principal amount of L 32,000/-. However, the courts below have awarded exorbitant interest @ 2% per month which comes to 24% per annum and therefore, the same is required to be reduced to a reasonable rate which, according to the court, would be 9% p.a. Hence, the appellant is directed to pay L 32,000/- with interest @ 9% per annum to the respondent.