{"id":114824,"date":"2009-11-06T00:00:00","date_gmt":"2009-11-05T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/maharashtra-housing-and-area-vs-pessumal-pamandas-menghrajani-on-6-november-2009"},"modified":"2016-09-10T09:37:52","modified_gmt":"2016-09-10T04:07:52","slug":"maharashtra-housing-and-area-vs-pessumal-pamandas-menghrajani-on-6-november-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/maharashtra-housing-and-area-vs-pessumal-pamandas-menghrajani-on-6-november-2009","title":{"rendered":"Maharashtra Housing And Area vs Pessumal Pamandas Menghrajani on 6 November, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Bombay High Court<\/div>\n<div class=\"doc_title\">Maharashtra Housing And Area vs Pessumal Pamandas Menghrajani on 6 November, 2009<\/div>\n<div class=\"doc_bench\">Bench: P. B. Majmudar, R. C. Chavan<\/div>\n<pre>                                      1\n\n    Lgc\n\n\n\n\n                                                                           \n           IN THE HIGH COURT OF JUDICATURE AT BOMBAY\n              ORDINARY ORIGINAL CIVIL JURISDIC\/TION\n\n\n\n\n                                                   \n                         APPEAL NO.343 OF 2009\n                                   IN\n                          SUIT NO.3902 OF 1992\n\n\n\n\n                                                  \n    1.  Maharashtra Housing and Area                  ]\n         Development Authority, Griha Nirman          ]\n         Bhavan, Bandra(East), Mumbai-400051          ] \n\n\n\n\n                                         \n                                                      ]\n    2.  The Deputy Chief Executive (Works)\n                             ig                       ]\n          Mumbai Housing and Area Development         ]\n          Board, Griha Nirman Bhavan,                 ]\n          Bandra (East), Mumbai - 400 051             ]\n                           \n                                                      ]\n    3.   The Executive Engineer, Housing              ]\n          Bandra Division, Mumbai Housing             ]\n          Area Development Board, Griha Nirman        ]......  Appellants\n            \n\n\n          Bhavan, Bandra(East), Mumbai-400051         ]Org.Defendants\n         \n\n\n\n                        Versus\n\n    Pessumal Pamandas Menghrajani                     ]\n\n\n\n\n\n    carrying on business and Civil Engineers and      ]\n    Government Contractors, in the firm name          ]\n    and style of Jeevan Construction as Sole          ]\n    Proprietor thereof and having his office at       ] Respondent<\/pre>\n<p>    4\/54, Daulat Nagar, Thane(East)-400 603           ]Org.Plaintiff<\/p>\n<p>    Mr.P G Lad, AGP, for the appellants.\n<\/p>\n<p>    Mr.Pessumal Pamandas Menghrajani &#8211; respondent-  present in person.\n<\/p>\n<p><span class=\"hidden_text\">                                                   ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                                  2<\/span><\/p>\n<p>                                            CORAM : P.B.MAJMUDAR &amp;<\/p>\n<p>                                                     R.C.CHAVAN,  JJ<br \/>\n                                            DATED  : NOVEMBER 06, 2009<\/p>\n<p>    ORAL JUDGMENT : (PER R.C.CHAVAN, J.)<\/p>\n<p>    1.           This   appeal   is   directed   against   the   Judgment   dated   22nd <\/p>\n<p>    August,   2008,   delivered   by   a   learned   Single   Judge   of   this   Court <\/p>\n<p>    whereby the learned Single Judge decreed the respondent\/plaintiff&#8217;s <\/p>\n<p>    suit for payment of interest over the amount which was denied to the <\/p>\n<p>    respondent\/plaintiff by the appellants.\n<\/p>\n<p>    2.           The facts, which are material for deciding this Appeal, are <\/p>\n<p>    as under :-\n<\/p>\n<p>                 The   appellants   had   engaged   the   services   of   the <\/p>\n<p>    respondent\/plaintiff   as   a   Contractor   for   carrying   out   certain   civil <\/p>\n<p>    works. On 28\/1\/1987 a work order to that effect was issued.   The <\/p>\n<p>    said   work   was   completed   on   28\/2\/1988.     The   respondent\/plaintiff <\/p>\n<p>    raised   certain   claims   in   respect   of   additional   material   used   and <\/p>\n<p>    additional   works     like   use   of   brick   bats   in   place   of   bricks,   use   of <\/p>\n<p><span class=\"hidden_text\">                                                                   ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                                3<\/span><\/p>\n<p>    pumps for de-watering etc.  The claims which the respondent\/plaintiff <\/p>\n<p>    had raised from time to time were not entertained by the appellants-\n<\/p>\n<p>    Authorities.  Eventually on  26\/10\/1990 the Deputy Chief Engineer of <\/p>\n<p>    the   appellants   held   that   the   plaintiff   was   entitled   to   sum   of   Rs.\n<\/p>\n<p>    1,45,764\/- as against the various claims of the plaintiff amounting to <\/p>\n<p>    Rs.1,50,535.35.   Out of these amounts, a sum of Rs.1,20,000\/- was <\/p>\n<p>    paid  to  the plaintiff  on  3\/12\/1991  and further  sum  of Rs.25,764\/-\n<\/p>\n<p>    was paid thereafter on 11\/3\/1992.\n<\/p>\n<p>    3.          Since the plaintiff was kept out of the amounts due, after <\/p>\n<p>    issuing the notice under Section 173 of the Maharashtra Housing and <\/p>\n<p>    Area Development Act, 1976, the plaintiff filed the suit for recovery of <\/p>\n<p>    the amount of interest at the rate of 21% per annum on the amounts <\/p>\n<p>    denied   to   the   plaintiff   from   time   to   time,   which   came   to   Rs.\n<\/p>\n<p>    1,31,345.90   on   the   date   of   the   suit.     The   plaintiff   claimed   further <\/p>\n<p>    interest at the rate of 21% per annum on this sum from the date of <\/p>\n<p>    the suit till realization.\n<\/p>\n<p><span class=\"hidden_text\">                                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              4<\/span><\/p>\n<p>    4.          By a Written Statement, the appellants\/Defendants denied <\/p>\n<p>    the liability to pay such interest, though they admitted that they had <\/p>\n<p>    paid the sum of Rs.1,45,764\/- as against the claim of the plaintiff to <\/p>\n<p>    the   tune   of   Rs.1,50,535.35   after   the   disputes   were   raised   by   the <\/p>\n<p>    plaintiff.  It was contended that the contract which the appellants had <\/p>\n<p>    entered into with the plaintiff did not contain any clause for payment <\/p>\n<p>    of any interest.   They also raised various other contentions like the <\/p>\n<p>    suit being not tenable etc.<\/p>\n<p>    5.          On these pleadings, three issues were struck  by the learned <\/p>\n<p>    Single Judge namely as to whether the plaintiff proves that the due <\/p>\n<p>    and payable amounts were delayed for a long time from the due dates <\/p>\n<p>    by the defendants, whether the plaintiff was entitled to the interest on <\/p>\n<p>    the delayed payment from the defendants, and whether the plaintiff <\/p>\n<p>    was entitled to payment of Rs.1,31,345.90  with interest thereon @ <\/p>\n<p>    21%  p.a.  from  the  date   of suit   till  judgment.      The  learned  Single <\/p>\n<p>    Judge  answered the first  two issues in the affirmative  and ordered <\/p>\n<p>    payment of Rs.1,31,345.90 with interest @ 12% p.a. from the date of <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              5<\/span><\/p>\n<p>    suit till  realisation, after considering the evidence tendered.   The oral <\/p>\n<p>    evidence   comprises   of   only   the   testimony   of   the   plaintiff.     The <\/p>\n<p>    appellants   had   not   chosen   to   tender   any   oral   evidence   before   the <\/p>\n<p>    Court.   Aggrieved   by   the   judgment,   the   appellants   are   before   this <\/p>\n<p>    Court.\n<\/p>\n<p>    6.          We   have   heard   the   learned   AGP   Shri   P   G   Lad   for   the <\/p>\n<p>    appellants\/Defendants and the respondent\/plaintiff who is present in <\/p>\n<p>    person.   The first point that arises for our consideration is, whether <\/p>\n<p>    the learned Single Judge rightly held that amounts due and payable <\/p>\n<p>    were withheld by the appellants without any justification. The learned <\/p>\n<p>    AGP  even questioned the entitlement of the respondent\/plaintiff  to <\/p>\n<p>    the amounts already paid. It is submitted by the learned AGP that the <\/p>\n<p>    Deputy Chief Engineer came to the conclusion of awarding amounts <\/p>\n<p>    claimed by the plaintiff by liberally considering the plaintiff&#8217;s claim, <\/p>\n<p>    though the same was required tobe rejected.It would be improper and <\/p>\n<p>    impermissible to re-open the question of entitlement of the plaintiff to <\/p>\n<p>    the amounts for various additional items of work carried out by him, <\/p>\n<p><span class=\"hidden_text\">                                                              ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                                 6<\/span><\/p>\n<p>    since the appellants\/Defendants had already paid those amounts.  The <\/p>\n<p>    elaborate order passed by the Deputy Chief Engineer on 26\/10\/1990, <\/p>\n<p>    which has been considered by the learned Single Judge, shows that <\/p>\n<p>    the Deputy Chief Engineer had found that the authorities were wrong <\/p>\n<p>    in denying to the plaintiff&#8217;s various amounts which he had claimed.\n<\/p>\n<p>    The learned Single Judge has quoted in Para 48, the observation of <\/p>\n<p>    the Deputy Chief Engineer that <\/p>\n<p>                 &#8220;&#8230;&#8230;   this   entire   case   is   not   dealt   properly   since<br \/>\n                 beginning   in   spite   of   numerous\/constant  <\/p>\n<p>                 communication   from   the   Agency   and   no   timely<br \/>\n                 action   from   the   Board   which   has   resulted   into  <\/p>\n<p>                 embarrassing position and this is liable for creating<br \/>\n                 incident of contractual complications.&#8221;\n<\/p>\n<p>                  In the face of this it is not open to the appellants to re-agitate <\/p>\n<p>    the question of respondent&#8217;s entitlement to the amounts claimed.\n<\/p>\n<p>    7.         The   learned   AGP   submitted   that   there   was   no   delay   in <\/p>\n<p>    payment of amounts to the plaintiff, since the amounts had to be first <\/p>\n<p>    ascertained   by   an   &#8220;adjudication&#8221;   by   the   Deputy   Chief   Officer <\/p>\n<p><span class=\"hidden_text\">                                                                   ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                                7<\/span><\/p>\n<p>    (Engineer), which was concluded only on 26\/10\/1990.  The amounts <\/p>\n<p>    found due were promptly paid thereafter.  This contention has to be <\/p>\n<p>    rejected   for   two   reasons.   Firstly,   the   plaintiff   had   been   raising   his <\/p>\n<p>    claims right since the work was executed in 1988.  &#8220;Decision&#8221; by the <\/p>\n<p>    Deputy Chief  Engineer of  the appellants,  to whom the claims were <\/p>\n<p>    presumably   referable   under   the   contract,   cannot   be   equated   to   an <\/p>\n<p>    independent   adjudication,   over   which   parties   may   not   have   any <\/p>\n<p>    control. The appellant has not been able to show what prevented the <\/p>\n<p>    Deputy Chief Engineer to promptly decide the claim in 1988 itself. If <\/p>\n<p>    when the appellant&#8217;s  own authorities chose to sit over the matter for <\/p>\n<p>    over two years, the appellant cannot take benefit of delay in decision <\/p>\n<p>    making.  And,  ironically,  even after the decision,  the appellant  took <\/p>\n<p>    more than one year to pay the amounts which even according to the <\/p>\n<p>    appellant&#8217;s Deputy Chief Engineer, the plaintiff was entitled to.\n<\/p>\n<p>    8.          The   appellant   cannot   take   advantage   of   administrative <\/p>\n<p>    procedural delays since it was an internal matter of the appellants for <\/p>\n<p>    which   the   respondent\/plaintiff   could   not   be   made   to   suffer.   We <\/p>\n<p><span class=\"hidden_text\">                                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               8<\/span><\/p>\n<p>    therefore   hold   that   the   learned   Single   Judge   has   rightly   concluded <\/p>\n<p>    that   the   amounts   due   and   payable   were   withheld   without <\/p>\n<p>    justification.\n<\/p>\n<p>    9.          This   takes   us   to   next   question   as   to   whether   this   delay <\/p>\n<p>    entitled the plaintiff to claim interest from the date of completion of <\/p>\n<p>    work   till   payment   was   actually   made.   The   learned   AGP   Shri   Lad <\/p>\n<p>    appearing for the appellants submitted that the plaintiff had admitted <\/p>\n<p>    in   his   cross   examination   that   there   was   no   term   in   the   contract <\/p>\n<p>    providing for payment of any interest to the plaintiff, and therefore, <\/p>\n<p>    there was no contractual foundation for the claim of the plaintiff in <\/p>\n<p>    respect of interest.   He further submitted that the interest could not <\/p>\n<p>    have been paid even under the Interest Act since the sum was not <\/p>\n<p>    ascertained till the adjudication,  i.e. till 26\/10\/1990, on which date <\/p>\n<p>    the Deputy Chief Engineer decided that the sum of Rs.1,45,764\/- was <\/p>\n<p>    payable to the plaintiff.   Therefore, he submitted that first, since the <\/p>\n<p>    sums   claimed   by   the   plaintiff   were   not   ascertained,   and   secondly, <\/p>\n<p>    since there was no adjudication ascertaining the sums claimed, there <\/p>\n<p><span class=\"hidden_text\">                                                                ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              9<\/span><\/p>\n<p>    was no liability to pay interest. He also submitted that the judicial <\/p>\n<p>    pronouncements on this question, right from the Privy Council, would <\/p>\n<p>    rule out the payment of interest to the plaintiff.\n<\/p>\n<p>    10.       For this purpose he relied upon the judgment of the Privy <\/p>\n<p>    Council in the case of  Maine and New Brunswick Electrical Power <\/p>\n<p>    Co. Ltd. v\/s. Alice M Hart, reported in AIR 1929 Privy Council 185.\n<\/p>\n<p>    In that case, the Board considered the question of paying the interest <\/p>\n<p>    and observed in the last penultimate para of the judgment as under:-\n<\/p>\n<blockquote><p>                &#8220;Hart   conveyed   the   property   purchased   to   the<br \/>\n                defendants.   He   received   from   the   defendants   the  <\/p>\n<p>                stock   to   be   transferred   to   him,   and   he   accepted  <\/p>\n<p>                from the defendants, as under the contract he was<br \/>\n                bound   to   do,   covenants   under   seal   to   perform  <\/p>\n<p>                certain   obligations   of   a   continuing   character<br \/>\n                involving the payment from time to time of sums of<br \/>\n                money.     Upon   the   stock   having   been   allotted   or<br \/>\n                transferred to Hart and the covenants having been  <\/p>\n<p>                executed,  Hart  had received  all  the  consideration<br \/>\n                moving   from   the   defendants   to   him   under   the<br \/>\n                contract. The plaintiff, as Hart&#8217;s successor-in-tilte,  <\/p>\n<p><span class=\"hidden_text\">                                                                ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               10<\/span><\/p>\n<p>                 cannot,   and   as   appears   from   her   statement   of  <\/p>\n<p>                 claim,   does   not   sue   upon   the   contract,   which   is<br \/>\n                 fully executed : she sues upon the covenants. Those  <\/p>\n<p>                 covenants   must   be   construed   according   to   the<br \/>\n                 ordinary rules of construction : and if so construed,  <\/p>\n<p>                 they do not give the plaintiff interest, she cannot<br \/>\n                 claim interest unless it is given to her at common<br \/>\n                 law   or   under   statute.   There   is   no   place   in   the  <\/p>\n<p>                 matter   for   the   exercise   of   equitable   jurisdiction  <\/p>\n<p>                 and,   therefore,   no   rule   of   equity   in   regard   to<br \/>\n                 interest can have any application.&#8221;\n<\/p><\/blockquote>\n<p>    11.        In the same year, the Judicial Commissioner at Nagpur in <\/p>\n<p>    the   matter  of  P  P  Deo   v\/s.  Narayan   and  others,  reported   in  AIR <\/p>\n<p>    1929 Nagpur 170 held that considering the provisions of Interest Act, <\/p>\n<p>    it was not correct to say that the Courts have power to award interest <\/p>\n<p>    in all cases where money due is withheld.  As the discussion to follow <\/p>\n<p>    would unfold, the claim in the suit is for compensation for the loss <\/p>\n<p>    caused due to delayed payment, and &#8220;interest&#8221; is only a measure to <\/p>\n<p>    compute the loss. Viewed thus, in our view, the judgments would be <\/p>\n<p>    unhelpful.\n<\/p>\n<p><span class=\"hidden_text\">                                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              11<\/span><\/p>\n<p>    12.       Relying on the judgment of the Supreme Court in the case <\/p>\n<p>    of   Thawardas Pherumal and anr. v\/s Union of India  reported in <\/p>\n<p>    AIR 1955 SC 468, the learned AGP Shri Lad submitted that interest <\/p>\n<p>    would not be payable as of rule unless certain conditions referred to <\/p>\n<p>    by the Supreme Court in Para 30 of the said judgment were fulfilled.\n<\/p>\n<p>    In para 30 of the Judgment, the Supreme Court held as under :-\n<\/p>\n<blockquote><p>               &#8220;The   Interest   Act,   1939   applies,   as   interest   is   not<br \/>\n               otherwise payable by law in this kind of case (see &#8212;\n<\/p><\/blockquote>\n<blockquote><p>               `<a href=\"\/doc\/1649438\/\">B N Ry. Co. v. Ruttanji Ramji&#8217;, AIR<\/a> 1938 PC 67<br \/>\n               (J), but even if it be assumed that an arbitrator is a  <\/p>\n<p>               &#8220;Court&#8221; within the meaning of that Act, (a fact that<br \/>\n               by no means appears to be the case), the following  <\/p>\n<p>               among   other   conditions   must   be   fulfilled   before<br \/>\n               interest can be awarded under the Act :\n<\/p><\/blockquote>\n<pre>               (1)          there must be a debt or a sum certain,\n               (2)          it must be payable at a certain time or  \n                            otherwise;\n\n\n\n\n\n               (3)          these debts or sums must be payable by  \n                            virtue   of   some   written   contract   at   a  \n                            certain time;\n\n\n\n\n<span class=\"hidden_text\">                                                                 ::: Downloaded on - 09\/06\/2013 15:16:24 :::<\/span>\n<span class=\"hidden_text\">                                             12<\/span>\n\n                 (4)         There   must   have   been   a   demand   in  \n\n\n\n\n                                                                                     \n                             writing   stating   that   interest   will   be  \n                             demanded from the date of the demand.\n\n\n\n\n                                                             \n                 Not   one   of   these   elements   is   present,   so   the \n\n\n\n\n                                                            \n<\/pre>\n<blockquote><p>                 arbitrator erred in law in thinking that he had the<br \/>\n                 power to allow interest simply because he thought<br \/>\n                 the demand was reasonable.&#8221;\n<\/p><\/blockquote>\n<p>    13.<\/p>\n<p>                Therefore according to the learned AGP, in this case, since <\/p>\n<p>    sums   claimed   were   not   ascertained   till   the   adjudications   were <\/p>\n<p>    completed on 26\/10\/1990, there is absolutely no question of payment <\/p>\n<p>    of any interest. This contention is fallacious. It is not that the plaintiff <\/p>\n<p>    had set his claims to any nebulous amounts.   He had quantified his <\/p>\n<p>    claim on each items right from the beginning and his first salvo to the <\/p>\n<p>    appellants   itself   would   show   that   he   had   claimed   certain   amounts.\n<\/p>\n<p>    Whether   this   claim   was   acceptable   to   the   appellants&#8217;   authorities <\/p>\n<p>    would   not   be   determinative   of   question   whether   the   sum   was <\/p>\n<p>    ascertained or not.  A reference to the Deputy Chief Engineer&#8217;s order <\/p>\n<p>    dated 26\/10\/1990 would itself show that claims for specific sums had <\/p>\n<p><span class=\"hidden_text\">                                                             ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               13<\/span><\/p>\n<p>    been raised   and had been considered by him. The respondent had <\/p>\n<p>    filed a copy of letter dated 12\/10\/1988 written by him, (Article No.5, <\/p>\n<p>    referred  to  in  Q.No.88  in   plaintiff&#8217;s  cross-examination   for  appellant <\/p>\n<p>    taken   on   4\/10\/2007).     This   letter   not   only   specifies   the   amount <\/p>\n<p>    claimed, but also raises specific demand of interest at 21% p.a. from <\/p>\n<p>    27.5.1988   i.e.   after   leaving   a   three   months   grace   period   after <\/p>\n<p>    completion of work on 28.2.1988.  Thus the requirements mentioned <\/p>\n<p>    in the case of Thawardas are complied.\n<\/p>\n<p>    14.         In   her   erudite   judgment,   the   learned   Single   Judge   has <\/p>\n<p>    carefully considered this aspect and has held that the interest is not <\/p>\n<p>    only payable if the contract so provides or statute so provides, but also <\/p>\n<p>    under the Common Law.  In this context, the learned Single Judge has <\/p>\n<p>    considered   the   provisions   of   Section   3   of   the   Interest   Act   and   has <\/p>\n<p>    found   that   the   interest   could   have   been   ordered   to   be   paid   since <\/p>\n<p>    written notice claiming the amount had been given and in spite of this <\/p>\n<p>    notice the amounts claimed were not paid. It would not have been <\/p>\n<p>    proper   to   deny   interest   to   the   respondent\/plaintiff   on   the   amount <\/p>\n<p><span class=\"hidden_text\">                                                                 ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                                14<\/span><\/p>\n<p>    which he had claimed to have borrowed for completing the work of <\/p>\n<p>    the appellants.  As  early  as on  28.12.1988, the plaintiff  had,  by his <\/p>\n<p>    letter, claimed interest as compensation. It may be seen that even the <\/p>\n<p>    appellant&#8217;s   Q.No.61   in   the   cross   examination   of   the   plaintiff   on <\/p>\n<p>    19\/12\/2007would show that interest was claimed as compensation.\n<\/p>\n<p>    Therefore,   since   the   respondent\/plaintiff   had   incurred   expenditure <\/p>\n<p>    when the work was completed on 28\/2\/1988, he would be entitled to <\/p>\n<p>    be compensated for interest, he was required to pay from 28\/5\/1988 <\/p>\n<p>    i.e. after the three months of the grace period. The plaintiff&#8217;s evidence <\/p>\n<p>    in   this   regard   was   not   rebutted   since   appellant   did   not   choose   to <\/p>\n<p>    tender   any   evidence.   In   view   of   this,   there   is   no   substance   in   the <\/p>\n<p>    contention of the learned AGP that the learned Single Judge erred in <\/p>\n<p>    awarding the interest, which was in the nature of compensation for <\/p>\n<p>    the interest which plaintiff was required to pay on amounts borrowed <\/p>\n<p>    from his bank.\n<\/p>\n<p>    15.          This   takes   us   to   the   next   submission   of   the   learned   AGP <\/p>\n<p>    that the learned Single Judge erred in awarding the interest at 12% <\/p>\n<p><span class=\"hidden_text\">                                                                  ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                               15<\/span><\/p>\n<p>    per annum as there was no warrant and no evidence for arriving at <\/p>\n<p>    such a rate.   The learned AGP may be right in submitting that there <\/p>\n<p>    was no witness examined by the plaintiff from his Bank to prove that <\/p>\n<p>    he had been paying interest on the amount borrowed.   But a letter <\/p>\n<p>    from  bank, Article  25, produced by him before  the Court  has been <\/p>\n<p>    considered by the learned Single Judge in Para 68 of the judgment, <\/p>\n<p>    which shows that plaintiff was paying interest at 17.34% p.a. on the <\/p>\n<p>    credit facilities availed by him. Apart from that award of interest at <\/p>\n<p>    12%   per   annum,   on   the   amounts   which   had   been   denied   to   the <\/p>\n<p>    plaintiff,   could   not   be   called   erroneous,   considering   the   prevailing <\/p>\n<p>    rate   of   the   interest   in   the   market.   This   was   in   the   nature   of <\/p>\n<p>    compensation for the loss caused, either by being required to actually <\/p>\n<p>    incur this expense by paying interest to his bank or by being denied <\/p>\n<p>    the use of these amounts.\n<\/p>\n<p>    16.         The learned AGP  lastly  submitted that the  learned Single <\/p>\n<p>    Judge has also awarded interest on the decretal amount from the date <\/p>\n<p>    of   the   suit   till   realization,   which   amounts   to  awarding   the   interest <\/p>\n<p><span class=\"hidden_text\">                                                                ::: Downloaded on &#8211; 09\/06\/2013 15:16:24 :::<\/span><br \/>\n<span class=\"hidden_text\">                                              16<\/span><\/p>\n<p>    over   interest     and   such   a   compound   interest   could   not   have   been <\/p>\n<p>    granted in a suit for recovery of money.  The proposition that interest <\/p>\n<p>    would not be awarded on interest is correct. But this is a peculiar case <\/p>\n<p>    where the plaintiff has been kept out of the money due and therefore <\/p>\n<p>    he   incurred   a   loss   which   has   been   compensated   by   the   interest <\/p>\n<p>    awarded by the learned Judge. Therefore, award of interest on such <\/p>\n<p>    amounts,   which   are   in   the   nature   of   compensation,   and   which   the <\/p>\n<p>    plaintiff   was   deprived   of,   cannot   be   termed   as   interest   over   the <\/p>\n<p>    interest.     Viewed  pragmatically,   the   plaintiff   could   be   said   to   have <\/p>\n<p>    been awarded damages for the tort of being kept out of the amounts <\/p>\n<p>    which were due. Therefore, interest which is awarded from the date <\/p>\n<p>    of institution of the suit could be treated as interest on the amount of <\/p>\n<p>    compensation to which the plaintiff was entitled on being kept out of <\/p>\n<p>    amount due.   In view of this, there is no merit in this Appeal which is <\/p>\n<p>    accordingly dismissed with costs.\n<\/p>\n<pre>                Sd\/-                                                             sd\/-\n\n\n\n\n\n    [R.C.CHAVAN,J]                                               [P.B.MAJMUDAR,J]\n\n\n\n\n<span class=\"hidden_text\">                                                               ::: Downloaded on - 09\/06\/2013 15:16:24 :::<\/span>\n <\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Bombay High Court Maharashtra Housing And Area vs Pessumal Pamandas Menghrajani on 6 November, 2009 Bench: P. B. Majmudar, R. C. Chavan 1 Lgc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDIC\/TION APPEAL NO.343 OF 2009 IN SUIT NO.3902 OF 1992 1. Maharashtra Housing and Area ] Development Authority, Griha Nirman [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11,8],"tags":[],"class_list":["post-114824","post","type-post","status-publish","format-standard","hentry","category-bombay-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Maharashtra Housing And Area vs Pessumal Pamandas Menghrajani on 6 November, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/maharashtra-housing-and-area-vs-pessumal-pamandas-menghrajani-on-6-november-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Maharashtra Housing And Area vs Pessumal Pamandas Menghrajani on 6 November, 2009 - Free Judgements of Supreme Court &amp; 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