RSA-4384-2019 [203] New India Assurance Company Limited M/s Seth Steels, E Focal Point, Ludhiana and others Coram : Present: PANKAJ JAIN [1] para No.2 of the judgment passed by the Lower Appellate Court, which reads as under: 2019 (O&M) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH RSA-4384 Date of Decision : New India Assurance Company Limited versus M/s Seth Steels, E-198, Phase-IV, Focal Point, Ludhiana and others HON’BLE MR. JUSTICE PANKAJ JAIN Mr. Paul S. Saini, Advocate for the appellant. Mr. Akshay Rawal, Advocate for respondent No.1. *** PANKAJ JAIN, J. (ORAL) Counsel for the appellant has drawn attention of this Court to para No.2 of the judgment passed by the Lower Appellate Court, which reads as under:- 2. Plaintiff/appellant filed suit for recovery of Rs.14,93,592.15/- as principal and inte a) Principal Amount (less Rs.3,11,650/- Rs.14,36,512.75/- b) Interest @ 18% p.a. (From the date of pilferage till the filing of suit). c) Damages (On account of mental torture and loss in business). Total IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 4384-2019 (O&M) Date of Decision : 30.04.2025 …Appellant ….Respondents PANKAJ JAIN Advocate Counsel for the appellant has drawn attention of this Court to para No.2 of the judgment passed by the Lower Appellate Court, which Plaintiff/appellant filed suit for recovery of as principal and interest detailed as below: out of Rs.11,24,862.75/ (From the date of pilferage till Rs.1,68,729.40/ (On account of mental torture Rs.2,00,000/- Rs.14,93,592.15/ 1 Counsel for the appellant has drawn attention of this Court to para No.2 of the judgment passed by the Lower Appellate Court, which Plaintiff/appellant filed suit for recovery of rest detailed as below:- Rs.11,24,862.75/- Rs.1,68,729.40/- Rs.14,93,592.15/- RAJNEESH SHARMA 2025.05.06 18:21 I attest to the accuracy and integrity of this document RSA-4384-2019 [2] the concluding part of the judgment, which reads as under: [3] Court erred in awarding interest o [4] commercial transaction, @ 18% per annum for the period prior to the filing of the suit. However, he is not in a position to di plaintiff is taken on its face value, he will not be interest. [5] the Lower Appellate Court is 2019 (O&M) He has further drawn attention of this Court to para No.44 i.e. the concluding part of the judgment, which reads as under: “44. Accordingly, the appeal in hand is allowed and impugned and decree dated 20.4.2017 is hereby set aside and suit of the plaintiff /appellant is decreed with costs and plaintiff/appellant is entitled for a recovery of amount of Rs.14,93,592.15 Paise as prayed for alongwith interest at the rate of 9% per date of filing of the suit till its realisation from the respondents No.1 and 2 jointly and severally. Decree sheet be prepared accordingly.” Counsel for the appellant submits that the Lower Appellate Court erred in awarding interest on interest. Counsel for respondent No.1 however submits commercial transaction, Lower Appellate Court @ 18% per annum for the period prior to the filing of the suit. However, he is not in a position to dispute that even is taken on its face value, he will not be In view thereof, the impugned judgment and decree passed by the Lower Appellate Court is modified to the following The plaintiff-respondent is held entitled to the following amounts:– (i) Principal amount of Rs.11,24,862 (ii) The aforesaid principa per annum from the date further drawn attention of this Court to para No.44 i.e. the concluding part of the judgment, which reads as under:- Accordingly, the appeal in hand is allowed and impugned judgment and decree dated 20.4.2017 is hereby set aside and suit of the plaintiff /appellant is decreed with costs and plaintiff/appellant is entitled for a recovery of amount of Rs.14,93,592.15 Paise as prayed for alongwith interest at the rate of 9% per annum from the date of filing of the suit till its realisation from the respondents No.1 and 2 jointly and severally. Decree sheet be prepared Counsel for the appellant submits that the Lower Appellate n interest. Counsel for respondent No.1 however submits that it being a Lower Appellate Court has rightly granted interest @ 18% per annum for the period prior to the filing of the suit. However, he spute that even if the whole of the claim of the is taken on its face value, he will not be entitled for interest In view thereof, the impugned judgment and decree passed by to the following extent:- respondent is held entitled to the following Principal amount of Rs.11,24,862.75/-. al amount shall carry interest @ from the date it fell due i.e. 10.04.2007 till the 2 further drawn attention of this Court to para No.44 i.e. judgment and decree dated 20.4.2017 is hereby set aside and suit of the plaintiff /appellant is decreed with costs and plaintiff/appellant is entitled for a recovery of amount of Rs.14,93,592.15 Paise as annum from the date of filing of the suit till its realisation from the respondents No.1 and 2 jointly and severally. Decree sheet be prepared Counsel for the appellant submits that the Lower Appellate that it being a interest @ 18% per annum for the period prior to the filing of the suit. However, he of the claim of the interest on In view thereof, the impugned judgment and decree passed by respondent is held entitled to the following interest @ 9% due i.e. 10.04.2007 till the RAJNEESH SHARMA 2025.05.06 18:21 I attest to the accuracy and integrity of this document RSA-4384-2019 [6] [7] [8] disposed off 30.04.2025. ‘R. Sharma' 2019 (O&M) date of actual realization. The plaintiff shall also be entitled for damages of Rs.2,00,000/ @ 6% per annum. With the aforesaid modification, the appeal is Needless to say, any amount already paid shall be adjusted. All pending miscellaneous application(s), if any, stands disposed off. 30.04.2025. Whether speaking/ reasoned Whether reportable realization. The plaintiff shall also be entitled for damages of Rs.2,00,000/- along with interest With the aforesaid modification, the appeal is disposed off. Needless to say, any amount already paid shall be adjusted. All pending miscellaneous application(s), if any, stands (PANKAJ JAIN) JUDGE : Yes/No : Yes/No 3 realization. The plaintiff shall also be along with interest All pending miscellaneous application(s), if any, stands RAJNEESH SHARMA 2025.05.06 18:21 I attest to the accuracy and integrity of this document