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Defendant made to pay the pending dues by the court with interest by order.
Defendant made to pay the pending dues by the court with interest by order.
Plaintiff Co. ran business of hire purchase & finance. It had agreement with defendant for providing service. Defendant committed default in making payment. Plaintiff sent notice. Defendant never paid. Thus, Plaintiff filed present recovery suit. Court held, defendant was served & has not put in his appearance within prescribed period of 10 days, thus, allegations in plaint are deemed to be admitted. Hence, court upheld award with interest.-500304
Facts in Brief:
1. The plaintiff company is engaged in the business of hire purchase and finance.
2. The plaintiff and the defendants entered into a hire purchase agreement. Plaintiff let on hire article to the defendant.
3. The defendants executed a promissory note with the hire purchase agreement, wherein the defendants have jointly and severally promised to pay to the plaintiff the sum of Rs. 27,480/- in 12 equal monthly installments of Rs. 2,290/- each with overdue interest @ 2.5% per month on outstanding unpaid/delayed installments.
4. The defendant committed defaults in the repaying schedule and failed to adhere to the terms and conditions of the said agreement.
5. The plaintiff sent demand notice to the defendants to pay the outstanding amount pending against them.
6. Despite repeated requests and reminders, the defendants have neglected/avoided/failed to pay the outstanding amount to the plaintiff, including the prescribed overdue interest, as pending against them.
7. Hence, plaintiff filed the present recovery suit.
Court held as under:
8. Accordingly, a decree for a sum of Rs. 18,025/- (Rupees Eighteen Thousand Twenty Five Only) with pendente lite and future interest @ 10% per annum and costs of the suit is passed in favor of the plaintiff and against the defendant no. 2.
RELEVANT PARAS OF JUDGMENT ARE AS UNDER:
9. According to Order XXXVII Rule 3 of Code of Civil Procedure, the defendant is required to enter an appearance either in person or by pleader and, in either case, he shall file in Court an address for service of notices on him within ten days of service of the summons prescribed under Rule 2 (2) of the said Order.
10. Further, as per Rule 2 (3) of Order XXXVII of the said Code, the defendant cannot be allowed to defend the suit unless he enters an appearance and in default of his entering an appearance the allegations in the plaint shall be deemed to be admitted and the plaintiff shall be entitled to a decree for any sum, not exceeding the sum mentioned in the summons together with interest at the rate specified, if any, up to the date of the decree and such sum for costs as may be determined by the Court from time to time by rules and such a decree may be executed forthwith.
11. The defendant no. 2 was served and has not put in his appearance within the prescribed period of ten days, thus, the allegations in the plaint are deemed to be admitted. It is pertinent to note that in the present suit, the liability of the defendants arises out of a commercial transaction. However, in exercise of the discretion under Section 34 of the Code of Civil Procedure, this Court awards pendent lite and future interest at the rate of 10% per annum instead of 2.5% per month, which appears to be exorbitant and unreasonable.
Case Reference-M/S. True Link Finance Limited vs Smt. Pandin
IN THE COURT OF MS. SALONI SINGH, CIVIL JUDGE -02,
PATIALA HOUSE COURTS, NEW DELHI DISTRICT, NEW DELHI
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