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High CourtsDivision Bench(2013) 11 P&H CK 0127

M/s. C.L. Jain Woolen Mills (Pvt.) Ltd. vs M/s. Mosenthals Wool and Mohair S.A. (Pvt.) Ltd.

Punjab And Haryana At Chandigarh · Decided on 27 November 2013

HON’BLE JUDGES
Sanjay Kishan Kaul, C.J · Augustine George Masih, J
RESULT
Disposed Off
CASE NUMBER
Company Appeal No. 24 of 2013 (O and M)

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Judgment

5 paragraphs · 352 words

Sanjay Kishan Kaul, C.J.—Admit. Mr. Tushar Sharma, Advocate, accepts notice for the respondents.

2.

At the request of learned counsel for the parties, the appeal is taken up for disposal.

3.

The challenge to the impugned order of the learned Company Judge was confined by the appellant only to the issue of rate of interest payable which was quantified at 8.25% vide order dated 1.2.2013. This was in view of the fact that payment had to be made by the appellant in dollars and, thus, LIBOR rate would apply, as the appellant should not be burdened both with Indian rate of interest while payment has to be made in dollars. LIBOR rates for the relevant period have been placed on record by the appellant which have been verified by the learned counsel for the respondent. The LIBOR rate should come to about 3% over the period of time. In fact, learned counsel for the appellant has also drawn our attention to a Division Bench judgment of the Delhi High Court in M.M.T.C Vs. AL Bamar Company Ltd., where also the LIBOR rate was fixed at 3%.

4.

Learned counsel for the respondent does not dispute the aforesaid position, but submits that the LIBOR rate should be compounded monthly.

5.

We are unable to accept the aforesaid plea and are of the view that the rate of interest should be 3% simple interest, since the payment is being made in dollars and the appellant is already burdened with the sudden spurt in the value of dollar vis-�-vis the Indian Rupee in the international market over the last one year. The impugned order is modified to the aforesaid extent and the appeal is party allowed leaving the parties to bear their own costs. Application seeking interim stay also stands disposed of accordingly. Learned counsel for the appellant states that the local representative of the respondent is no more available and the person through whom the payment has to be made may be communicated so that the payment may be made on or before 28.2.2014, as undertaken by learned counsel for the respondent. So ordered.