2018 (2) TMI 1939

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....d in the plaint as Directors. The plaintiff, in accordance with the clause on the invoices raised on the defendant No. 1, has also claimed interest @ 24% per annum for the period prior to the institution of the suit, from the date of the invoices till the date of institution of the suit. Hence the suit for recovery of Rs. 1,56,48,380/- with future interest and costs. Only the defendants No. 1 to 3 contested the suit by filing a written statement and to which a replication was filed by the plaintiff. None appeared for defendant No. 4 Ram Lal Jharia. The Counsels, on enquiry state that the defendant No. 4 was sought to be served at the address of the defendant No. 1 only and the defendant No. 1 has filed an affidavit to the effect that the de....

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....ales Tax law issued by the defendant No. 1 to the plaintiff. It is also not in dispute that the defendant No. 1 has paid only a sum of Rs. 53,07,000/- leaving the balance of Rs. 1,03,50,000/-. 6. I have thus asked the Counsel for the defendants No. 1 to 3, what is the defence in this respect. 7. The Counsel for defendants No. 1 to 3 has drawn attention to the pleas taken in the written statement and on which issues aforesaid were framed but which as aforesaid are found to have been proved in favour of the plaintiff. Though the defendants took a plea of the machinery being of inferior quality and of an Agreement with the plaintiff of payment of price thereof in instalments, but have utterly failed to prove the same and the said pleas a....

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....defendant No. 2 to 4. 13. With respect to the aspect of interest, the Counsel for the defendants No. 1 to 3 has contended that the interest claimed @ 24% per annum is excessive. It is however proved and not disputed that the invoices contained a clause for payment of interest at the said rate and no protest was made with respect thereto and in fact the price was sought to be paid by cheques which were dishonoured. 14. In this view of the matter, I am of the view that for the pre-suit period, the plaintiff is entitled to the contractual rate of interest for the reason of the transaction between the parties being a 'commercial' one. However considering the prevalent rates of interest paid on fixed deposits in the contemporaneous....