{"id":98818,"date":"2009-08-25T00:00:00","date_gmt":"2009-08-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-thomas-vs-the-vysya-bank-ltd-on-25-august-2009-2"},"modified":"2018-06-29T13:08:42","modified_gmt":"2018-06-29T07:38:42","slug":"m-thomas-vs-the-vysya-bank-ltd-on-25-august-2009-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-thomas-vs-the-vysya-bank-ltd-on-25-august-2009-2","title":{"rendered":"M.Thomas vs The Vysya Bank Ltd on 25 August, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">M.Thomas vs The Vysya Bank Ltd on 25 August, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nAS.No. 869 of 1998()\n\n\n\n1. M.THOMAS\n                      ...  Petitioner\n\n                        Vs\n\n1. THE VYSYA BANK LTD.\n                       ...       Respondent\n\n                For Petitioner  :SRI.S.ANANTHASUBRAMANIAN\n\n                For Respondent  :SRI.K.K.JOHN\n\nThe Hon'ble MR. Justice P.Q.BARKATH ALI\n\n Dated :25\/08\/2009\n\n O R D E R\n                            P.Q.BARKATH ALI, J.\n                        - - - - - - - - - - - - - - - - - - - - -\n                               A.S.No.869 OF 1998\n                    - - - - - - - - - - - - - - - - - - - - - - - - - -\n                    Dated this the 25th day of August, 2009\n\n                                  JUDGMENT\n<\/pre>\n<p>       The defendant is the appellant. The suit was for recovery of the<\/p>\n<p>amount due to the plaintiff bank from the defendant. The lower court<\/p>\n<p>decreed the suit.      The defendant challenges the said decree and<\/p>\n<p>judgment in this appeal.\n<\/p>\n<p>       2.   The case of the plaintiff bank as detailed in the plaint and as<\/p>\n<p>testified by its branch Manager as PW1 before th lower court in brief is<\/p>\n<p>this :\n<\/p>\n<p>       The defendant is a Post Master. He joined in the Investors Club<\/p>\n<p>run by the plaintiff bank which deals with shares. On his request the<\/p>\n<p>plaintiff bank purchased 100 shares of different companies on May 4,<\/p>\n<p>1992 at a total price of Rs. 1,34,345.15. The defendant should have<\/p>\n<p>paid the amount on or before June 2, 1992 which he did not do.<\/p>\n<p>Thereafter, the defendant paid Rs. 50,000\/- and Rs. 20,000\/- . The<\/p>\n<p>amounts fetched by sale of shares were also credited to his account.<\/p>\n<p>Thereafter the matter was settled between the plaintiff and defendant<\/p>\n<p><span class=\"hidden_text\">A.S.No.869\/98                        2<\/span><\/p>\n<p>and defendant had agreed to pay Rs. 35,000\/ in lump on or before<\/p>\n<p>December 31, 1993.        Rs. 8172.76 being the interest charged was<\/p>\n<p>reversed and credited to the account of the defendant and only<\/p>\n<p>thereafter the balance amount payable was settled at Rs.35,000\/-. But<\/p>\n<p>defendant thereafter paid only Rs. 13,979.60.          Balance amount<\/p>\n<p>including interest at the rate of 24% per Annum is claimed in the suit.<\/p>\n<p>      3.    The appellant\/defendant in his written statement before the<\/p>\n<p>lower court contended and also testified as DW1 thus :<\/p>\n<p>            It was     the defendant&#8217;s son who placed the order for<\/p>\n<p>purchasing the shares. Initially the bank informed him that the shares<\/p>\n<p>are not available. Thereafter they purchased the shares and tried to<\/p>\n<p>harass the defendant.     Thereafter, it was agreed that on receipt of<\/p>\n<p>purchase value of shares, the bank will relinquish their claim for<\/p>\n<p>interest. The amount already paid by the defendant and the amount<\/p>\n<p>obtained by sale of shares were agreed to be adjusted. If those amounts<\/p>\n<p>are adjusted, Rs. 6148\/- is due to the defendant from the plaintiff bank.<\/p>\n<p>      4.    Bank filed a replication denying the allegations in the<\/p>\n<p>written statement.     On the side of the plaintiff bank, the Branch<\/p>\n<p><span class=\"hidden_text\">A.S.No.869\/98                       3<\/span><\/p>\n<p>Manager was examined as PW1 and he produced Exts.A1 to A8 before<\/p>\n<p>the lower court. Defendant was examined as PW1 and he produced<\/p>\n<p>Exts.D1 and D2. The lower court on an appreciation of evidence<\/p>\n<p>upheld the claim of the bank and decreed the suit as prayed for with<\/p>\n<p>costs. The defendant has now come up in appeal.\n<\/p>\n<p>      5.     The only question which arises for consideration is whether<\/p>\n<p>the decree and judgment of the lower court can be sustained ?<\/p>\n<p>      6.     The learned counsel for the appellant\/defendant argued that<\/p>\n<p>plaintiff bank purchased the shares against his orders, that he has not<\/p>\n<p>agreed to settle the matter for Rs. 35,000\/- and that the agreement was<\/p>\n<p>to sell the shares and adjust that amount towards the amount due from<\/p>\n<p>him.\n<\/p>\n<p>      7.     The specific case of the defendant was that it was his son<\/p>\n<p>who placed the orders for purchasing the shares, that bank informed<\/p>\n<p>him that no shares are available and thereafter the bank purchased the<\/p>\n<p>shares. But except the interested version of DW1 there is complete<\/p>\n<p>absence of evidence on the side of the defendant to prove the above<\/p>\n<p>aspect. The son of the defendant was not examined as a witness on his<\/p>\n<p><span class=\"hidden_text\">A.S.No.869\/98                       4<\/span><\/p>\n<p>side to show that it was him who placed the orders for purchasing the<\/p>\n<p>shares.   There is nothing on record to show that it was not in<\/p>\n<p>accordance with his directions that the bank purchased the shares.<\/p>\n<p>There is also no evidence to show that bank informed him that shares<\/p>\n<p>were not available.    That being so, the lower court is justified in<\/p>\n<p>rejecting the above contentions of the appellant.<\/p>\n<p>      9.    It is the admitted case that the parties entered into a<\/p>\n<p>compromise before the filing of the suit. According to the plaintiff, the<\/p>\n<p>defendant agreed to pay Rs. 35,000\/- in full discharge of the amount<\/p>\n<p>due to the bank and to pay the amount on or before December 31, 1993.<\/p>\n<p>The defendant as DW1 would say that the agreement was that on<\/p>\n<p>payment of purchase value of shares, the plaintiff bank would<\/p>\n<p>relinquish its claim for interest and if that amount is adjusted,<\/p>\n<p>Rs. 6148\/- is due to him from the bank. There is no evidence adduced<\/p>\n<p>other than the interested version of DW1 to show that the settlement<\/p>\n<p>was as stated by DW1. On the other hand, the statement of accounts<\/p>\n<p>Exts.A2 produced by the plaintiff bank shows that as on 31\/03\/1993,<\/p>\n<p>total amount due from the defendant was Rs. 43,172.76. After<\/p>\n<p><span class=\"hidden_text\">A.S.No.869\/98                         5<\/span><\/p>\n<p>deducting the interest reversed amounting to Rs. 8172.76, the balance<\/p>\n<p>amount due from the defendant comes to Rs. 35,000\/- which probablise<\/p>\n<p>the case of the plaintiff bank that the defendant agreed to pay<\/p>\n<p>Rs. 35,000\/- in full discharge of the amount due from him to the bank.<\/p>\n<p>Therefore, the lower court is right in accepting the case of the plaintiff<\/p>\n<p>on this aspect. I have gone through the evidence adduced by both<\/p>\n<p>parties before lower court.      I am of the view that lower court is<\/p>\n<p>perfectly justified in believing the evidence of PW1 and rejecting the<\/p>\n<p>evidence of DW1 and decreeing the suit.\n<\/p>\n<p>      10.   There is another aspect. The plaintiff bank has claimed<\/p>\n<p>24% interest from April 1, 1993 onwards which appears to be<\/p>\n<p>excessive.   That apart, there is also some latches on the part of the<\/p>\n<p>plaintiff bank in purchasing the shares. The plaintiff bank did not<\/p>\n<p>adhere to the conditions laid down in the guidelines issued by them i.e.<\/p>\n<p>depositing 50% of the purchase value of the shares by the subscriber.<\/p>\n<p>Therefore, I feel that interest at the rate of 18% per Annum from<\/p>\n<p>April 1, 1993 till the date of suit and interest at the rate of 6% thereafter<\/p>\n<p>would be just and proper.\n<\/p>\n<p><span class=\"hidden_text\">A.S.No.869\/98                       6<\/span><\/p>\n<p>      In the result, the appeal is allowed in part. The decree of the<\/p>\n<p>lower court is modified to the effect that the plaintiff is granted a<\/p>\n<p>decree for recovery of Rs. 21,020\/- being the principal amount with<\/p>\n<p>interest at the rate of 18% per annum from April 1, 1993 till the date of<\/p>\n<p>suit i.e. 31st May 1998 and thereafter interest at the rate of 6% per<\/p>\n<p>annum from the date of suit till the date of decree and future interest at<\/p>\n<p>the same rate from the date of decree till realisation.           In the<\/p>\n<p>circumstances, both parties shall bear their own costs.<\/p>\n<p>                                                 P.Q.BARKATH ALI<br \/>\n                                                         JUDGE<\/p>\n<p>sv.\n<\/p>\n<p><span class=\"hidden_text\">A.S.No.869\/98    7<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court M.Thomas vs The Vysya Bank Ltd on 25 August, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM AS.No. 869 of 1998() 1. M.THOMAS &#8230; Petitioner Vs 1. THE VYSYA BANK LTD. &#8230; Respondent For Petitioner :SRI.S.ANANTHASUBRAMANIAN For Respondent :SRI.K.K.JOHN The Hon&#8217;ble MR. Justice P.Q.BARKATH ALI Dated :25\/08\/2009 O R D E [&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":[8,21],"tags":[],"class_list":["post-98818","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M.Thomas vs The Vysya Bank Ltd on 25 August, 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\/m-thomas-vs-the-vysya-bank-ltd-on-25-august-2009-2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M.Thomas vs The Vysya Bank Ltd on 25 August, 2009 - Free Judgements of Supreme Court &amp; 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