Signed confirmation of accounts can defeat leave to defend, while post-decree interest remains discretionary under civil procedure law.
A signed confirmation of accounts can constitute a written acknowledgment and contract supporting a summary suit where bank transfers and the agreed balance are reflected in the document; a bare assertion of an alternative cash-loan arrangement, unsupported by reliable material, will not amount to a bona fide defence or triable issue. Post-decree interest remains within the court's discretion under Section 34 CPC: while contractual terms may govern pre-decree interest, future interest need not follow the claimed compounded rate. The principal decree was sustained, and future interest was awarded at 9% simple interest per annum from the date of decree until payment.
Issues: (i) Whether the defendant had disclosed a bona fide defence or triable issue so as to merit leave to defend in the summary suit based on the signed confirmation of accounts. (ii) Whether the plaintiff was entitled to future interest at the claimed contractual rate or at any rate beyond the decree.
Issue (i): Whether the defendant had disclosed a bona fide defence or triable issue so as to merit leave to defend in the summary suit based on the signed confirmation of accounts.
Analysis: The bank transfers of Rs. 50 lakhs stood proved and were specifically reflected in the confirmation of accounts signed by both parties, including the defendant's endorsement confirming the balance and the agreed interest terms. The defence that the amount represented a cash loan allegedly arranged by the defendant was found unsupported by reliable material and was treated as a sham and moonshine defence. The signed confirmation was held to amount to a written acknowledgment and contract for the purposes of the summary suit, and no triable issue was found warranting leave to defend.
Conclusion: The refusal of leave to defend was upheld and the decree for the principal sum was sustained.
Issue (ii): Whether the plaintiff was entitled to future interest at the claimed contractual rate or at any rate beyond the decree.
Analysis: In a summary suit, pre-decree interest follows the contractual stipulation, but post-decree interest falls within the Court's discretion under Section 34 of the Code of Civil Procedure, 1908. The Court held that the reduction of pendente lite interest to 9% simple interest did not suffer from arbitrariness, but the complete denial of future interest required correction. Considering the money decree and the discretionary power under Section 34, future interest was held payable, though not at the claimed compounded rate.
Conclusion: The plaintiff succeeded in part and future interest at 9% simple interest per annum from the date of decree till payment was awarded.
Final Conclusion: The decree on the principal claim was affirmed, the challenge to the dismissal of leave to defend failed, and the decree was modified only to grant post-decree interest at 9% simple interest per annum.
Ratio Decidendi: A duly signed confirmation of accounts may constitute a written acknowledgment and contract supporting a summary suit, and post-decree interest under Section 34 of the Code of Civil Procedure, 1908 remains a matter of judicial discretion, even where pre-decree interest is contractually claimed.
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