Dismissed

Penaka Naga Sreenivasulu Reddy, v. Challa Krishan Reddy

Telangana HC13 Nov 2013SA/495/2011

Case brief

AI extract

What is this about?

In the second appeal, the High Court modified the lower court's decree regarding interest. The appellate court confirmed the judgment for a sum of Rs.1,72,250/- with subsequent interest at 6% per annum on the principal of Rs.1,00,000/- from the date of plaint registration till realization.

What did the court decide?

The second appeal was dismissed; the judgment and decree were confirmed with modification to subsequent interest at 6% per annum on Rs.1,00,000/-.

Penaka Naga Sreenivasulu Reddy, Vs Challa… — Contract and Commercial Disputes | Telangana HC (2013)

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THE HONOURABLE SRI JUSTICE B. CHANDRA KUMAR

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S.A. No.495 of 2011

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JUDGMENT

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This appeal is filed challenging the judgment and decree dated 16.06.2009 in A.S.No.39 of 2007 passed by the V Additional District Judge, Nellore, whereby and where under the appellate Court confirmed the judgment and decree dated 08.12.2005 in O.S.No.317 of 2003 passed by the II Additional Senior Civil Judge, Nellore.

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2. The appellant herein is the defendant. The plaintiff filed the suit for recovery of the amount basing on a promissory note said to have been executed by the defendant on 19.08.2000. In the promissory note, it is mentioned that the appellant has borrowed the amount for business purpose. The record also shows that the appellant was doing contract works previously. According to him, he has stopped the contract works and not renewed the contract registration. However, when EP was filed, certain amount payable to the appellant towards contract works seems to have been attached. It is not clear whether those contract works pertain to the relevant period. It is not in dispute that the appellant is having agricultural lands. Therefore, it is not clear whether the main source of income of the appellant is from the agriculture or from the contract works. Anyhow, since the appellant contended that he has not relieved of his licence with registration of contract works, it appears that some reduction in interest may be justified. As on

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the date of obtaining loan, it is clear that the appellant was a contractor and he had obtained loan for his business purpose. Therefore, the rate of interest calculated by the appellant for Rs.1,00,000/- cannot be disturbed. In the circumstances, the judgment and the decree passed by the lower Court is modified as follows;

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”The suit is decreed for a sum of Rs.1,72,250/-with costs and subsequent interest at 6% per annum on the principal amount of Rs.1,00,000/- from the date of registration of the plaint till the date of decree and till the date of realization”.

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3. Subject to the modification made supra, the judgment and the decree passed by the lower Court are confirmed. The Second Appeal is disposed of accordingly. Miscellaneous petitions, if any pending in this appeal shall stand closed.

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____________________ B.CHANDRA KUMAR, J

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13^th November, 2013 sj

Penaka Naga Sreenivasulu Reddy, v. Challa Krishan Reddy

Case brief

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Penaka Naga Sreenivasulu Reddy, v. Challa Krishan Reddy

Case brief

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