Interest on delayed payment of professional charges
j.r.kota
(Querist) 12 November 2011
This query is : Resolved
Dear Sir,
A client of mine had availed the professional services in the year 1998 and had not paid the professional charges Rs1,60,000\- in spite of repeated reminders. After issuing a legal notice a case was filed in the year 2003 in a civil court. The judgement has come in my favour but only for the principal amount.In the judgement the judge says since there is no agreement for payment of interest, I am not entitled. Is it fair? In professional services do chartered accountants/doctors/lawyers would usually have a clause while accepting the assignment for interest? Can go for appeal? My advocate says there may not be any use? Do I have to forgo the interest from 1998 to July 2011 when the judgement is pronounced? My advocate has claimed 24% in the notice and in the plaint.Is the value of Rs1,60,000 in 1998 is the same as 2011 - after 13 years? The Judge said I have conclusively proved my case but yet I am entitled only for the fee (Principal amount). Pl advise.
jrk
ajay sethi
(Expert) 12 November 2011
the judge is right . since there is no agreement no interest has been awarded. you cant claim 24%interest when there is no such clause in the contract . hence you cnanot be netitled for interest for period 1998 to 2001
Chanchal Nag Chowdhury
(Expert) 13 November 2011
I feel that U have been unfairly treated.Interest is a compensation for delayed payment & is payable unless there is a clause prohibiting interest. Since U have already demanded interest, U R entitled to it. The rate of interest may be discretionary but it cannot be rejected.
Sailesh Kumar Shah
(Expert) 13 November 2011
It would be better to go for appeal. But before going received Rs.160000/-.
prabhakar singh
(Expert) 13 November 2011
To me you are not entitled to interest from the date fees became due to the date of notice of demand.
But you are entitled to interest from the date of notice to the date of suit or
decree,butnot @ 24% as demanded in notice.
Even if the claim of interest was not made by any notice interest could be awarded by the court for pend i lite period at least @ rate C.P.C. SPECIFICALLY ALLOWS AND EMPOWERS THE COURT.
This all suggest you should knock the door of appeal for interest and should seek execution for decreed sum.
