{"id":397833,"date":"2026-10-05T13:00:29","date_gmt":"2026-10-05T07:30:29","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=397833"},"modified":"2026-10-09T16:21:47","modified_gmt":"2026-10-09T10:51:47","slug":"calcutta-hc-allows-money-recovery-suit-on-oral-documentary-evidence","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/10\/05\/calcutta-hc-allows-money-recovery-suit-on-oral-documentary-evidence\/","title":{"rendered":"Calcutta High Court decrees ₹47 lakh money recovery suit on failure to prove repayment and coercion"},"content":{"rendered":"
\n

Calcutta High Court:<\/span> The Single Judge Bench of Sugato Majumdar, J., while dealing with a case of recovery of money, decided in favour of the plaintiff considering the evidence on record adduced in support of the claim. The Court held that the plaintiff was entitled to a decree for money and directed the defendant to pay ₹47,00,000 to the plaintiff with interest at 10 per cent per annum from the date of institution of the suit until repayment. The Court observed that the defendant itself admitted lending of money in his written statement, but failed to substantiate his repayment and coercion defences by leading evidence. The Court allowed the suit principally on the plaintiff’s oral and documentary evidence, recognising the plaintiff’s monetary claim.<\/p>\n

Background<\/p>\n

The case arose when the plaintiff’s consignment was allegedly refused to be released despite making the full payment. The plaintiff company was originally incorporated under the Companies Act, 1913<\/a> and subsequently became a private limited company under the Companies Act, 1956<\/a>. It carried on the business of manufacturing Polyethylene Terephthalate (PET) Resin and regularly imported Purified Terephthalic Acid (PTA), a raw material required for its manufacturing operations. The defendant was the proprietor of Transmart Container Lines and was engaged in providing services connected with the export-import trade, including transportation and logistics. The parties had a longstanding business relationship. The defendant had acted as a carrier for the plaintiff on several occasions and also acted as an agent of T.K.M. Global Logistic Limited (TKM), a forwarding agency.<\/p>\n

In 2012, the plaintiff appointed the defendant in connection with three consignments of PTA intended to be transported from Busan, Korea and Kwang Yong to Haldia Port in India. The consignments were accepted by the defendant in August\/September 2012. The consolidated invoice value of the consignments was stated to be approximately ₹7,42,13,226. The plaintiff stated that the entire value of the cargo, including freight and shipment charges, had already been paid.<\/p>\n

After the consignments arrived, TKM allegedly refused to release the cargo because of amounts which remained payable by the defendant. Since the plaintiff urgently required the PTA for its continuous manufacturing operations, it made payments to TKM on behalf of the defendant. On 3 September 2012, the plaintiff paid ₹14,05,549 and ₹15,27,697 against TKM’s pending bill. The plaintiff contended that these payments were made at the defendant’s request and constituted financial assistance or loans extended for discharge of the defendant’s obligations. The plaintiff further stated that when the remaining cargo arrived, TKM again refused to release it because of outstanding dues. The plaintiff consequently advanced a further sum of ₹52,00,000 to the defendant on 10 October 2012 for clearing the dues payable to TKM. It also paid ₹18,00,000 to Maersk Line India Pvt. Ltd. towards demurrage charges on behalf of the defendant.<\/p>\n

The plaintiff further specified that a total sum of ₹85,00,000 had been advanced for the defendant’s benefit. The plaintiff claimed that ₹15,00,000 had been advanced on 4 September 2012 and ₹70,00,000 on 10 October 2012. The defendant allegedly agreed to pay interest at 18 per cent per annum and undertook to repay the amounts between November 2012 and March 2013. A security was also allegedly created over an immovable property belonging to the defendant’s mother, with an undertaking concerning deposit of the title deeds. The plaintiff further relied upon an alleged acknowledgment by the defendant of the outstanding sum of ₹85,00,000 and then 5 cheques of ₹5,00,000 each were allegedly handed over towards repayment, but those cheques were dishonoured.<\/p>\n

The aggrieved plaintiff instituted the suit claiming recovery of the outstanding amount ₹1,64,46,057 along with interest at a rate of 18 per cent per annum. The defendant contested the suit by filing written statement. The defendant submitted that he had good relationship with the plaintiff. Because of such good relationship, he approached the plaintiff for financial assistance in connection with business. The plaintiff agreed to pay a sum of ₹52,00,000 as a loan, out of which ₹51,48,000 was actually received after deduction of tax at source.<\/p>\n

The defendant contended that he had subsequently paid ₹7,50,000 by different cheques and thereafter paid a further ₹30,50,000 to completely discharge the loan. He asserted that he had properly discharged his duties as forwarding agent in respect of the relevant consignments and that there were no outstanding dues payable by him to TKM. He claimed that he had himself paid approximately ₹53,90,000 to TKM towards its forwarding charges. The defendant further alleged that the plaintiff had failed to pay him a brokerage commission of 2 per cent. The defendant further asserted that the plaintiff forced him to sign 5 undated cheques under threat, which he issued without filling in any figure. The defendant was also forced to sign some blank documents and the signatures of the defendant as well as his mother had been taken on blank cheque under threat and coercion. He further alleged that various emails sent by him acknowledging the outstanding loan had also been procured under coercion.<\/p>\n

The defendant in his defence stated that he had instituted separate proceedings before the Civil Court at Alipore, seeking a declaration that the undertakings allegedly executed by him and his mother were null and void and without legal effect. His principal defence in the present suit was that no amount remained payable to the plaintiff and that the cheques and documents relied upon by the plaintiff had been obtained through coercion.<\/p>\n

Issues<\/p>\n

    \n
  1. \n

    Whether the plaintiff is entitled to a decree for the sum of ₹1,64,46,057 along with costs as claimed?<\/p>\n<\/li>\n

  2. \n

    Whether the plaintiff is entitled to recover interest at the rate of 18 per cent per annum on the outstanding amount as agreed by the defendant in his undertaking?<\/p>\n<\/li>\n<\/ol>\n

    Decision and Analysis<\/p>\n

    The Court examined the plaintiff’s evidence together with the admissions and pleadings of the defendant. The Court observed that the plaintiff adduced documentary and oral evidence in support of its claim. The defendant, however, failed to adduce evidence in support of his defence because of repeated absence of his witness which resulted in closure of the defendant’s evidence. In the written statement, defendant itself admitted lending of money. The written statement itself admitted lending of money. The plea taken by the defendant in his title suit before the Civil Judge, Junior Division at Alipore, along with Exts. L, M, N and O, also established that money had been lent. A coordinate Bench of this Court, by order dated 4 September 2018, directed the defendant to deposit ₹30, 50, 000 in cash with the Registrar, Original Side, within four weeks, failing which there would be a decree for that amount with interest at 10 per cent per annum from the date of institution of the suit. A decree was subsequently drawn up, but the defendant did not deposit the amount. The rest of the claim was relegated to the suit. The Court found that the part of the outstanding amount had already been decreed on admission. As the defendant led no evidence in support of his version, his allegations in the written statement and his assertions of repayment remained unproved. The Court considering the evidence on record concluded that the plaintiff was entitled to a decree for money. The Court noted that the original principal amount was ₹77,50,000. Since ₹30,50,000 had already been decreed, the remaining principal amount payable was ₹47,00,000. Although the plaintiff had claimed interest at 18 per cent per annum, the Court noted that interest at 10 per cent per annum had already been awarded in respect of the amount covered by the earlier decree. The Court therefore awarded interest at the same rate of 10 per cent per annum on the remaining principal amount of ₹47,00,000 from the date of institution of the suit until repayment.<\/p>\n

    Accordingly, the suit was allowed. The plaintiff was granted a decree for ₹47,00,000 together with interest at 10 per cent per annum from the date of institution of the suit until repayment. The defendant was directed to pay the decretal amount within 3 months from the date of drawing up of the decree. In the event of default, the defendant would be liable to pay further interest at 3 per cent per annum from the date of default on the principal amount together with capitalised interest. The plaintiff was also granted liberty to initiate execution proceedings.<\/p>\n

    [IVL Dhunseri Petrochem Industries (P) Ltd.<\/span> v. Pulak Ghosh<\/span>, 2026 SCC OnLine Cal 14817<\/a>, decided on 22-9-2026<\/span>]<\/p>\n

    *Judgment authored by: Justice Sugato Majumdar<\/span><\/strong><\/p>\n\n

    Advocates who appeared in this case:<\/p>\n

    For the Plaintiff:<\/span> Soumabho Ghosh, Sohom Sarkar, Advocates<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    The Court, considering the evidence on record, concluded that the plaintiff was entitled to a decree for money, therefore awarded the payment of ₹47,00,000 with interest at the rate of 10 per cent per annum from the date of institution of the suit until repayment.<\/p>\n","protected":false},"author":67544,"featured_media":397834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,10],"tags":[2513,8131,35128,2713,111040,34313,116233,31709,116232,31854,2591,60732,30292,56296,116231,38169,38604,116234,32567,3083,116236,46182,41533,37772,30796,116235],"class_list":["post-397833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-Calcutta_High_Court","tag-civil-suit","tag-coercion","tag-decree","tag-dishonoured-cheques","tag-documentary-evidence","tag-failure-to-adduce-evidence","tag-financial-assistance","tag-forwarding-agent","tag-immovable-property","tag-Interest","tag-justice-sugato-majumdar","tag-loan","tag-loan-repayment","tag-logistics","tag-oral-evidence","tag-principal-amount","tag-principal-outstanding","tag-recovery-of-money","tag-Security","tag-suit-allowed","tag-title-deeds","tag-transportation","tag-undertaking","tag-written-statement","tag-47-lakh"],"yoast_head":"\nCalcutta 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