Need Citation for Pronote case & Set aside Compromise decree obtained by fraud

Hi All, Person X borrowed money from me and P1, gave pronote, no payment, I filed 2 pronote cases. In 1st case, court awarded me 6% interest from filing date till realisation of amount. P1 got decree in sub court of different district, which granted 12% interest from filing date to Decree date, then 6% till realisation of amount. My lawyer said, court usually grants 6% from filing date to Decree date, to get 12% we need to file Petition to Amend the Plaint, to Amend the interest part of the prayer: original prayer in the plaint: "To direct the defendants to pay a sum of Rs.x,xx,000 as on this date with further interest from plaint date till the date of realisation of the amount as this Hon'ble court may deem fit and proper. amended prayer: "To direct the defendants to pay a sum of Rs.x,xx,000 as on this date with further interest at the rate of 12% on principal amount from plaint date to Decree date and subsequent Interest at 6% per annum from Decree date till the realisation of amount" My lawyer does not have citation. X borrowed money from me to construct 1st floor of his house. 1) The above suit was filed in Sub court, so please give 2-3 citation in district court, for simple pronote case, in which interest 12% awarded from date of filing to date of decree. ---- X borrowed money and gave pronote to me, P1 & P2. X settled his properties to daughter and filed Insolvency. P1 & P2 filed pronote case and got decree, then filed case to declare settlement as void. Little later, I got decree for my pronote case, and requested above P1 & P2 Lawyer to include me in case, for which he said your degree is from different district, so I cannot include you. I have several issues and delays in transferring my decree. My lawyer said to file Exection Petition in a different district, transfer of decree is must. But for above declaration case, court decree from different district is allowed. 2) Who is correct? Please clarify, if possible provide Order, Rule or Section In above declaration case, P2 died 2months ago, P1 and son of P2 received pronote amount from X. When X came to know that I was going to file "Petition to Implead party" , X in collusion with P1's lawyer, filed SOC Memo with forged signature of late P2. 3) I'm going to file a petition to set aside the Compromise decree that had been obtained by fraud. Please tell me which Order, Rule, Section to set aside? Once the above case is restored, I'm going to file Petition to Implead myself as Plaintiff. The stage of the case is: X and his daughter yet to file Written Statement. P1 and P2 has jointly filed Plaint, and the pleadings in first half of the Plaint does not apply for me. 4) Without my pleadings in Plaint, how the Defendants ( X and his daughter) will file Written Statement? 5) Should I file Petition to Amend the Plaint, requesting the court to strike out Para 1-10 and substitute with Para 1-10 of my pleadings?

5 Answers

What was interest rate specified in promissory note ?

2) section 79 of NI act provides you can claim interest rate mentioned in promissory note

79. Interest when rate specified.—When interest at a specified rate is expressly made payable on a promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the principal money due thereon, from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the court directs.

THE NEGOTIABLE INSTRUMENTS ACT, 1881

80. Interest when no rate specified.—When no rate of interest is specified in the instrument, interest on the amount due thereon shall, 1[notwithstanding any agreement relating to interest between any parties to the instrument], be calculated at the rate of 2[eighteen per centum] per annum, from the date at which the same ought to have been paid by the party charged, until tender or realization of the amount due thereon, or until such date after the institution of a suit to recover such amount as the Court directs. Explanation.—When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only from the time that he receives notice of the dishonour.

3) if no interest rate is specified you can claim interest under section 80 of NI act ie 18 per cent per annum

4) your lawyer is correct that for filing execution petition in another district decree has to be transferred

Ajay Sethi

Advocate, Mumbai

99775 Answers

8145 Consultations

Talk to Advocate Ajay Sethi

1. The decree passed by the court itself clearly states that the interest @ 12% to be paid from the date of filing the sit till date of decree and @ 6% as future interest till realization of the amount, so there is no legal infirmity in it.

Since there is no legal infirmity in this, you need not go for amendment or enhancement of the interest amount, which will not be entertained by court if there is no provision for that.

2. If you have obtained a decree in favor you against X, then you can file the execution petition to execute the judgment, if the judgment debtor is from other district you may file the EP in that jurisdiction by obtaining permission from the original court to transfer the decree to the executing court.

You may not be able to implead yourself as a party to that declaration suit even though you have a decree against the same defendant/judgment debtor, because you have filed a separate suit, hence you may have to initiate a suit to declare his settlement as void separately.

3. Since you are not the party to that suit you cannot become eligible to file a set aside petition for any reason.

You may have to file a separate suit only to claim your relief against the judgment debtor.

4. Without a party to the suit, there is no necessity to take your permission or consent to conduct the suit or file the written statement by the parties to that suit.

5. You have no reasons to implead yourself as a plaintiff in that suit.

You have no relief in that suit filed by third parties.

Your grievances have been already heard by a different court.

If at all you have any further grievances against the defendant, you may have to file a separate suit.

Understand the law and then come to conclusion, do not be under misguidance without understanding the law or by incorrectly interpreting the law to suit your circumstances.