BULCHAND CHANDIRAM Vs. BANK OF INDIA LIMITED

JUDGEMENT

(1.) THE following Judgment of the court was delivered by

(2.) THIS appeal is brought, by certificate, from the judgment of the Bombay High court dated 16/11/1962 in Cross Appeals Nos. 756 and 791 of 1057.

(3.) IN support of this appeal Mr. Chagla contended, in the first place, that no interest should have been allowed to the Bank from 15/08/1947 in view of the provisions of s. 29 of the said Act. We are unable to accept this argument as correct. Proviso, (b) to s. 29(1) of the said Act confers a discretion on the tribunal to allow interest not exceeding 4 per cent. per annum for the period from 15/08/1947 up to 10/12/1951, the date on which the said Act came into force in Bombay after taking into account the, paying capacity of the debtor as defined in s. 32 of the Act. The expression `paying capacity of the debtor`, is defined in S. 32 of the said Act as follows : `the aggregate of the market value of all-the attachable assets in INdia of the displaced debtor plus the income which is likely to accrue to him for the next three years succeeding, excluding from the computation of such income a sum calculated at the rate of two hundred and fifty rupees a month.` The High Court has observed, on the statement of the appellant himself, that his paying capacity far exceeded the aggregate debt due from him and it was therefore a fit case in which interest at 4 per cent, should be allowed to the Bank from 15/08/194 7/12/1951. IN our opinion, the finding of the High court on this point is supported by proper evidence. We accordingly reject the argument of the appellant on this aspect of the case.