Rakesh Kumar Singh v. Indian Oil Corporation Limited

#1. Plaintiff-appellant has filed money suit against the defendant claiming Rs. 33,900/- together with pendente lite and future interest @ 18% till the final payment and for mandatory injunction against the defendant and his agent/servant etc. that they may be directed to handover the article/utensils etc. to the plaintiff, as mentioned in Annexure no.1 of the plaint. Plaintiff came with the case that defendant company has invited tender from public to run a canteen in his terminal Kanpur Nagar, wherein tender of the plaintiff has been accepted. However, he has not been given support and provided the facilities as agreed upon between the parties at the time of finalization of the tender. Subsequently, he has been stopped to run the canteen. Thus, he is entitled for compensation to the tune of Rs. 33,900/- and also entitled for the utensils and other articles which are at present in possession of the defendant. Learned trial court has decreed the suit acknowledging the entitlement of the plaintiff for Rs. 33,900/- @ 18% interest and also for the articles/utensils as mentioned in inventory list 5(Ga). Having been aggrieved, defendant has filed appeal. The first appellate court has dismissed the appeal, however, modified the judgment and decree passed by the trial court to the extent that principal amount has been reduced from Rs. 33,900/- to Rs. 33,312/- and the rate of interest from 18% p.a. to 6% p.a., however, no direction has been issued with regard to the entitlement of the plaintiff for the articles/utensils, as decreed by the trial court.

#2. It is submitted that once the appeal filed on behalf of the appellant has been dismissed, first appellate court has no jurisdiction to modify the judgment and decree passed by the trial court. It is next submitted that provisions enunciated under Section 34 of C.P.C. has been misread and misinterpreted to reduce the rate of interest. In support of her submission, learned counsel for the appellant has placed reliance upon the judgments passed by the Hon'ble Apex Court in the case of Aditya Mass Communications (P) Ltd. Vs. A.P. State Road Transport Corporation, 2003 AIR(SC) 3411, decided on 23.09.2003 and I.K. Merchants Pvt. Ltd. and Ors. Vs. State of Rajasthan and Ors., 2025 SCCOnline SC 692, decided on 01.04.2025.

#3. Appeal is admitted on the following substantial questions of law: (i) Whether, while dismissing the appeal filed on behalf of the defendant, could first appellate court modify the judgment and decree passed by the trial court? (ii) Whether, first appellate court has misread and misinterpreted the provisions enunciated under Section 34 of C.P.C. to reduce the rate of interest from 18% p.a. to 6% p.a., whereas business relationship between the parties is admitted?

#4. Let record of the courts below be summoned and notices be issued to sole defendant-respondent, fixing 31.07.2025 as the date. Order on Stay Application

#5. Issue notice as observed above. In the meantime, both the parties shall exchange their respective affidavits, if any.

#6. It is made clear, that pendency of the instant appeal will not impede the execution of the decree as per judgment passed by the first appellate court, subject to decision of the instant second appeal. Order Date :- 8.5.2025 Sumit K.