1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION SUIT NO.1084 OF 2003 Gulf Oil Corporation Ltd. .. Plaintiffs versus Geekay Exim (India) Ltd. .. Defendants Ms.Mamta Sadh i/by Ms.Indira D.Vira for the plaintiffs. CORAM : A.S.OKA, J. DATE : 10th November 2009. ORAL JUDGMENT: . The suit is listed under the caption of “Undefended suits for ex-parte decree”. According to the case of the plaintiffs, the defendants borrowed a sum of Rs.50 lacs from them on terms and conditions incorporated in letter dated 22nd April 1996. The defendants delivered the pledged shares to the plaintiffs alongwith the said letter and the signed transfer deeds. 2. According to the case of the plaintiffs, two cheques in the sum of Rs. 50 lacs and Rs.2,27,835/- dated 22nd July 1996 were issued by the defendants in favour of the plaintiff. The said cheques were dishonoured. Thereafter, a notice of demand dated 30th July 1996 was issued by the plaintiffs to the defendants. 2 3. A complaint under section 138 of the Negotiable Instruments Act, 1881 was filed by the plaintiffs against the defendants on account of the dishonour of the aforesaid two cheques. It is stated that during the pendency of the complaint, certain payments totally amounting to Rs.2,27,835/- were made by the defendants which were accepted by the plaintiffs without prejudice to their rights and contentions. The present suit is filed for recovery of Rs.46,60,931/- which is the balance amount payable. It is stated that the amounts paid by the defendants from time to time were appropriated firstly towards the interest and then towards the principal. A demand was made by the advocate’s notice dated 14th June 2001 to the defendants calling upon them to pay the amount. As the demand was not complied with, present suit has been instituted. 4. The claim in the suit is for recovery of sum of Rs.46,60,931/- together with interest amounting to Rs.30,49,398/- being the interest on the aforesaid amount at the agreed rate of 24% per annum from 18th May 2000 till the date of institution of the suit. Further interest is prayed at the rate of 24% per annum from the date of institution of the suit. 5. The plaintiffs have tendered on record an affidavit of evidence of Mr.P.S.Murthy. The said affidavit is taken on record and marked Exhibit P-1. The plaintiffs have tendered seven documents alongwith a list. The list and documents have been collectively marked as Exhibit P-2. The original letter 3 dated 22nd April 1996 has been produced and proved. There is a stipulation therein for payment of interest at the rate of 24% per annum on the loan amount of Rs.50 lacs. The office copies of demand notices have been placed on record. There is no written statement filed by the defendants. The documents produced on record which are duly proved by the witness prove the case of the plaintiffs. In paragraph 6 of the affidavit, details of the payments received during the pendency of the suit have been disclosed. 6. The plaintiffs have prayed for further interest at the rate of 24% per annum from the date of institution of the suit. Considering the facts and circumstances of the case, interest deserves to be fixed at the rate of 12% per annum. 7. Hence, I pass the following order: : O R D E R : (a) There will be a decree in terms of prayer clause (a) with modification that further interest will be payable at the rate of 12% per annum from the date of the suit. (b) The plaintiffs will be entitled to refund of court fees as per the rules. (A.S.OKA,J)