2013 (9) TMI 1267 - HC - Indian Laws

Summary

Issues Involved:
1. Condonation of delay.
2. Leave to defend under Order XXXVII CPC.
3. Existence of a formalized contract.
4. Admission of liability through balance sheets.
5. Applicability of Order XXXVII CPC.
6. Question of interest.

Summary:

Condonation of Delay:

For the reasons mentioned in the application, C.M. No.15154/2013 is allowed.

Leave to Defend under Order XXXVII CPC:

This is an appeal from an order of the learned Single Judge declining the unsuccessful defendant's leave to defend a suit brought under Order XXXVII of the Code of Civil Procedure ("CPC"�) by Jindal Steel and Power Ltd. (hereinafter "JSPL"�) for recovery of a principal sum of Rs. 2,98,39,060/- along with interest.

Existence of a Formalized Contract:

The appellant argued that there was no formalized contract between the parties on the basis of which a liquidated amount of money claimed in the suit could be decreed. However, JSPL relied on a series of letters exchanged between the parties which established an agreement for the loan amount.

Admission of Liability through Balance Sheets:

The defendant produced documents including the balance sheet of M/s Guru Mehar Construction, which showed the sum of Rs. 2,98,39,060/- as loan outstanding to the plaintiff as on 31.3.2011. The learned Single Judge held that the question of liability was now only an academic exercise due to this admission.

Applicability of Order XXXVII CPC:

It was argued that the suit does not fall within any of the recognized heads under Order XXXVII CPC. However, the court noted that a suit based on an agreement through exchange of letters is amenable to being decided under Order XXXVII. The letters exchanged between the parties clearly established a liquidated debt due to JSPL.

Question of Interest:

The learned Single Judge noted that JSPL could not provide any details of an agreement for interest at the rates claimed. Accordingly, the interest was granted at 8% per annum from 01.04.2008. The court found that the absence of an agreement to pay interest does not debar the plaintiff from claiming interest in a suit under Order XXXVII CPC.

Conclusion:

The appeal is dismissed as there is no infirmity with the Order of the learned Single Judge and the leave to defend was correctly denied. The judgment and decree of the learned Single Judge is consequently not liable to be interfered with. The appeal is dismissed without any order as to costs. The Court fees shall be paid within two weeks.