K. L. SUNEJA & ANR versus DR. (MRS.) MANJEET KAUR MONGA (D) THROUGH HER LR & ANR

K. L. SUNEJA & ANR versus DR. (MRS.) MANJEET KAUR MONGA (D) THROUGH HER LR & ANR

The Court held that because the original Pay Order for `4,53,750/- was tendered and the amount was debited from the developer’s account, and because the complainant filed the original Pay Order with her complaint without obtaining any protective order for deposit or enforcement (and thus failed to take steps to protect her interest), the developer could not be fastened with liability to pay further interest on that sum after 30 April 2005; Order XXI principles apply. Consequently the NCLAT direction that interest run from 1 May 2005 to 7 May 2016 was set aside and the developer’s appeal allowed, while the complainant’s appeal was dismissed.

Parties
Developer: K. L. Suneja & Anr.; Complainant: Dr. (Mrs.) Manjeet Kaur Monga (D) through her legal representatives & Anr.; Additional Respondent: Citibank N.A.
Jurisdiction
India
Judgment Date
31 January 2023
Procedural Posture
Civil Appeal / Final Judgment (appeal Disposed)
Outcome
Developer's appeal allowed; impugned NCLAT order (to the extent it awarded interest after 30-04-2005) set aside; complainant's appeal dismissed; appeals disposed of; no order as to costs.
Legal Topics
Unfair Trade Practice, Compensation and Interest, Payment by Banker’s Instruments (pay Order/demand Draft), Order XXI CPC, Restitution, Judicial Deposit of Funds
Competition Act / Competition Law Monopolies and Restrictive Trade Practices Act, 1969 Civil Procedure (code of Civil Procedure, 1908) Unfair Trade Practice Compensation and Interest Payment by Banker’s Instruments (pay Order/demand Draft) Order XXI CPC Restitution +1 more

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Parties

K. L. Suneja & Anr.

Developer

Dr. (Mrs.) Manjeet Kaur Monga (D) through her legal representatives & Anr.

Complainant

Citibank N.A.

Additional Respondent

Procedural Posture

Civil Appeal / Final Judgment (appeal Disposed)

Legal Issues

  1. 1 Whether developer was liable to pay interest on `4,53,750/- after 30 April 2005
  2. 2 Whether tendering of a Pay Order / debit of developer’s account discharged developer’s liability under principles embodied in Order XXI CPC
  3. 3 Whether complainant was entitled to interest from date of deposit (1993) until realization (2016)

Ratio Decidendi

The Court held that because the original Pay Order for `4,53,750/- was tendered and the amount was debited from the developer’s account, and because the complainant filed the original Pay Order with her complaint without obtaining any protective order for deposit or enforcement (and thus failed to take steps to protect her interest), the developer could not be fastened with liability to pay further interest on that sum after 30 April 2005; Order XXI principles apply. Consequently the NCLAT direction that interest run from 1 May 2005 to 7 May 2016 was set aside and the developer’s appeal allowed, while the complainant’s appeal was dismissed.

Court Disposition

Developer's appeal allowed; impugned NCLAT order (to the extent it awarded interest after 30-04-2005) set aside; complainant's appeal dismissed; appeals disposed of; no order as to costs.

Orders

  • Allow Civil Appeal No. 1401 of 2019 (developer's appeal) and set aside the impugned order of NCLAT insofar as it directed interest on Rs.4,53,750/- after 30-04-2005
  • Dismiss Civil Appeal No. 4530 of 2019 (complainant's appeal)