SYNDICATE BANK NARGUND Vs. SUBHAS VENKAPPA SAVALKER

JUDGEMENT

(1.) The only question that arises for consideration in this appeal is as to whether the trail Court is justified in law in awarding interest at 6% per annum on the principal sum of Rs. 1,01,0007- from the date of suit till the date of realisation instead of awarding interest at the contractual rate on Rs. 2,28,733.50 from the date of suit till the date fixed in the decree for payment.

(2.) The plaintiff-Bank advanced two loans to defendants 1 and 2. A sum of Rs.71,000/- was advanced on 19-5-1976 and a further sum of Rs. 30,000/- was advanced on 22-11-1976. Ofcourse, the sum of Rs. 71,000/- was not paid in lumpsum, but it was paid in 4 instalments. However, for the purpose of this case, it is not necessary to go into that aspect of the matter because the defendants have not challenged that part of the decree passed by the trial Court.

(3.) The plaintiff filed the suit on 10-9-1984 for recovery of a sum of Rs. 2,28,733.50 inclusive of interest at the agreed rate upto that date. The principal sum as pointed above was Rs. 1,01,000/- and the rest was the interest accrued on the principal upto the date of filing of the suit. The defendants had secured the aforesaid two loans by creating an equitable mortgage by deposit of title deeds of the suit schedule properties as per Exs. P-6 and P-8. The trial Court has awarded interest on the principal sum of Rs. 1,01,000/- at 6% p.a. from the dale of suit till the date of realisation. The trial Court has not given any reason for awarding interest at 6% from the date of suit till the date of the decree on the sum of Rs. 1,01,000/- only. This is a case to which Order 34 of C.P.C. is attracted because the suit is for recovery of the mortgage money by sale of the mortgaged properties.