SUPREME COURT OF INDIA

Before:-R.C. Lahoti and Brijesh Kumar, JJ.

Civil Appeal No.7866 OF 2001. (Special Leave Petition (C) No.10946/2001). D/d. 09.11.2001.

Nand Lal - Appellant

Versus

Maya Devi and others - Respondents

Civil Procedure Code, 1908, Section 34 - Interest - Principal amount became due to the respondent when partnership was dissolved - Respondent filed suit for recovery - Court directed principal amount to be paid with interest @ 18% per annum from the pre suit period, pendant elite interest @ 12% to be paid on the decretal amount (which included the principal amount as also the interest calculated @ 18% till the date of the suit) and interest @6% per anum from the date of the decree till date of payment- Held - Award of interest @ 18% peranum for pre suit period was excessive - Appellant directed to pay interest @ 12% from the date dissolution of firm to the date of decree and further interest @ 6% an principal amount.

[Para 5]

ORDER

R.C. Lahoti, J. - Leave granted.

2. Parties were partners in a Registered Partnership Firm M/s. Bharat Rice Mills. The partnership was dissolved on 08.02.1980. An amount of Rs. 48,298.78 was found to be due and payable to Smt. Maya Devi, the respondent No.1 by other partners of the firm. The assets and liabilities of the firm were taken over by the appellant. The amount was not paid, and therefore, she had to file a suit for the recovery of the same. The First Appellate Court directed this amount to be paid with interest @ 18% per annum for the pre suit period. Pendente lite interest @ 12% was directed to be paid on the decretal amount (which would include the principal amount as also the interest calculated @ 18% till the date of the suit). Further interest @ 6% per annum from the date of the decree i.e. 21.09.2000 till payment was also directed to be paid.

3. Although there was a controversy as to whether Rs. 45,000/- out of the amount due and payable to the respondent No.1. was paid to her but the plea of payment has been negatived by the First Appellate Court as also by the High Court and we do not think that finding is open to question.

4. Having heard the learned counsel for the parties, we are not inclined to dislodge the findings of fact recorded by the First Appellate Court and maintained by the High Court. We hold that the amount of Rs. 48,298.78 was due and payable by the appellant to respondent No.1 on 08.2.1980, the date of dissolution of the firm. However, the award of interest @ 18% per annum for the pre suit period appears to be excessive. It is, therefore, directed that the amount of Rs. 48,298.78 with interest calculated @ 12% per annum from 08.02.1980 to the date of the decree and further interest @ 6% per annum on the principal amount i.e. Rs. 48,298.78 shall be paid by the appellant to respondent No.1 within a period of three months' from today. The respondent No.1 shall also be entitled to costs as awarded by the First Appellate Court. The amount so calculated upto the date of this order, shall be payable in three equal instalments falling due on the 9th day of December, 2001 and January and February, 2002. In the event of any default by the appellant in payment of any of the instalments, the present appeal shall be deemed to have been dismissed and the impugned decree shall stand.

5. The appeal is disposed of accordingly.

Appeal disposed.