Under which circumstances defendant is not entitled to get leave to defend the Summary suit qua the interest component?

  Even the endeavor of Mr. Momaya to seek leave to defend by canvassing a submission that plaintiff has charged interest at an exorbitant and unconscionable rate does not advance the cause of the defendant. The plaintiff is seeking pre-suit, pendent lite, and future interest at the agreed rate of 12% per annum. In a business transaction in a commercial city like Mumbai, interest at the rate of 12% per annum can not be said to be exorbitant and unreasonable. Moreover, in the case at hand, there is an unequivocal undertaking to pay interest. In any event the award of interest on the amount covered by dishonoured cheques would be governed by the provisions contained in Section 80 of the Negotiable Instruments Act, 1881, which stipulates rate of 18 % per annum. Therefore, I am not persuaded to accede to the submission on behalf of the defendant to grant leave to defend the suit qua the interest component. {Para 35}

 In the High Court of Bombay

(Before N.J. Jamadar, J.)

Shailesh Bhagoobhai Bhoolabhai Vs  Deepak Raheja.

Summons for Judgment No. 36 of 2021,

Decided on December 15, 2022, 

Citation: 2022 SCCONLINE Bom 11643.

Read full Judgment here: Click here.

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