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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AMARINDER SINGH GREWAL
Punjab State Warehousing Corporation – Appellant
Versus
Hanuman Industries – Respondent
| Table of Content |
|---|
| 1. facts surrounding the plaintiff's claim for recovery of damages. (Para 3 , 4) |
| 2. arguments regarding interest rates and storage charges. (Para 6 , 8 , 9) |
| 3. court's observation on interest awards and contractual obligations. (Para 11 , 12 , 19 , 24) |
| 4. ratio on applicable interest under section 34 of cpc. (Para 14 , 18) |
| 5. final ruling regarding interest applicability. (Para 25) |
JUDGMENT :
Amarinder Singh Grewal, J.
C.M. No.13273-C of 2012
Application is allowed as prayed for.
C.M. No.13274-C of 2012
Prayer in the present application is for condoning the delay of 207 days in re-filing of the appeal and the same is accompanied by an affidavit.
For the reasons stated in the application, the same is allowed and delay of 207 days in re-filing of the appeal is condoned.
RSA No.4768 of 2012 (O&M)
1. The present regular second appeal has been filed by the appellant-plaintiff/Corporation challenging the judgment and decree dated 29.10.2011 passed by the learned 1stAppellate Court, whereby the appeals preferred by defendant-firm as well as the plaintiff/Corporation were dismissed while upholding the judgment and decree dated 23.01.2009 of the learned trial Court.
Vide judgment and decr
Court upheld contractual interest of 18% from pre-suit period while awarding 9% future interest post-decree, reflecting equitable considerations of a commercial transaction.
The main legal point established in the judgment is that the Interest on Delayed Payment to Small Scale and Ancillary Industrial Undertakings Act, 1993 does not apply to transactions prior to its enf....
The trial court has misdirected itself on the issue of awarding the interest pendent lite and future interest as envisaged under Section 34 of the CPC.
Pre-suit interest is impermissible under CPC unless stipulated by contract or statute; interest rates must align with statutory limits.
The deposit of auction proceeds in court does not discharge the debt, and interest continues to accrue at the contractual rate until payment is received.
Award of interest by Arbitrator – When discretion is vested to Arbitral Tribunal to award interest at a rate which it deems reasonable, then a duty would be cast upon Arbitral Tribunal to give reason....
The court emphasized that mortgage interest rates must reflect contractual agreements and market conditions, allowing for discretion in determining reasonable rates beyond the statutory limit.
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