1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL JURISDICTION SECOND APPEAL NO.1029 OF 2005 M/s. Mehta Trading Company ...Appellant. v. M/s. Fernandis Transport & Ors. ...Respondents. Mr.Amit Shete alongwith Mr.A.B.Borkar, advs. For the Appellant. CORAM : J.H. BHATIA, J. DATED : 17th September , 2009 P.C. 1 Heard the learned counsel for the appellant. The appellant is original plaintiff, who had filed Special Civil Suit No.773/95 claiming amount of Rs.1,48,165/- from the defendants/respondents. It was contended by the plaintiff that he had transported sugar by the truck of the respondents and during the transit, goods were lost and never reached the destination. He claimed about Rs.1,01,000/- being the price of goods . He also claimed interest at the rate of 18% p.a. from 18.4.93 when the goods were loaded till the date of filing the suit. He also claimed some amount towards typing and xerox expenses. The trial Court decreed the suit for an amount of Rs.1,01,000/- being price of goods with interest at the rate of 18% p.a. from 16.8.93 till the realisation of the amount. Defendants preferred regular civil appeal no.339/01. The appellate Court allowed the appeal partly only in respect of rate of interest . The 2 appellate Court held that interest at the rate of 18% p.a. was exorbitant and held that it should be 9% p.a. and accordingly, decree was modified. Original plaintiff has filed second appeal challenging the reduction of rate of interest. 2 Heard the learned counsel for the appellant. The First Appellate Court noted that suit was filed for recovery of price of the goods, which were lost in transit. There was no agreement between the parties about the payment of any interest on the damages, which could be claimed due to loss of goods. Interest could be granted at reasonable rate under Section 34 of the C.P.C. and in case of commercial transactions, interest could be awarded at the rate at which amounts are lent by the nationalised banks . It is further noted that RBI had substantially reduced rate of interest on the loans. Taking into consideration all these circumstances, the appellate Court held that interest at the rate of 18% p.a. was very high and exorbitant and, therefore, it was reduced to 9% p.a., which was supposed to be rate of interest charged by the banks on the loans. In view of the facts and circumstances, I do not find any question of law involved in the appeal. 3 Hence, the Appeal stands dismissed. (J.H. BHATIA,J.) 3