Recovery of Amount with Interest : Principles of Law

 Recovery of Amount with Interest : Principles of Law

There are lot of court cases where a party is claiming refund of the amount paid to the other party.

The case of Ella Ghosh v. Prateek Aggarwal [2013] GCtR 6258 (Delhi) answers some interesting legal issues on the aspect of money recovery.

In said case, the opposite party B argued that the money paid by party A stood forfeited. It was also argued that plaintiff A failed to exercise the options. Opposite party B also argued that there was no such obligation on his part as was argued by plaintiff A. 

The person A who gave money, produced the officials from Bank as witness for her bank statement. The Trial Court Judge, however, refused to order payment of money, by quoting S.65B of Indian Evidence Act, 1872. Further, the Trial Court Judge also took note of financial conditions and the consequent action of non-refund of amount. 

While setting aside the decision of Trial Court Judge, it was held that when there is no clear contract, then forfeiture of amount is not permissible. Refund of such amount has to be done. 

In addition to the principal amount, plaintiff was also held entitled to interest amount from the date of filing of the suit.