MEENAKSHI PHARMA DISTRIBUTORS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) HEARD the learned counsel for the appellant Sri. Krishna Kumar and the learned Government Pleader Sri M. H. Ibrahim.

(2.) ). The question in the appeal is very short one and it is to the effect whether the Trial Court acted according to law in awarding interest at the rate of 6% p. a. from the date of suit till the date of its realisation particularly when according to the case of the appellant. It is admitted position that the rate of interest was agreed and has been found to have been agreed at 15% P. A. This appeal arises from the judgment and decree dated 18-8-1987 passed by Sri K. R. Prasada Rao, XIV Additional City Civil Judge, Bangalore, in Original Suit No. 766/1977/1883/1980. The Trial Court decreed the suit for the sum as claimed in the plaint to the tune of Rs. 1,27,119. 05 ps. with costs and with interest at the rate of 6% on the principal balance amount of Rs. 56,969. 05 ps. from the date of suit till the date of realisation. On the basis of the pleadings of the parties, the Trial Court framed the following issues:-

(3.) THE only question that has been raised before me by the learned counsel for the appellant for consideration is, as to whether the plaintiff was entitled to the interest at the rate of 15% p. a. for the period from the date of suit till the date of realisation in view of the finding of the trial Court that agreement for payment of interest at the rate of 15% has been established. Learned counsel for the appellant contended that once an agreement has been arrived at that the interest shall be payable at the rate of 15% p. a. in case of default of payment beyond 30 days. So whether the money is paid before the decree or after the decree, the plaintiff is entitled to interest at the rate of 15% p. a. Learned counsel for the appellant contended that decree is in itself the money decree. Even after the decree it is not paid it means that there is delay in payment on his part. As such, the learned counsel contended that there is no good ground for the trial Court, while decreeing the suit to have reduced the rate of interest from the agreed 15% to 6%. Learned counsel contended that in view of the finding on issue No. 3 that the defendant had agreed to pay interest at 15% p. a. on delayed payments beyond 30 days. Plaintiff appellant has been entitled to grant of interest at the rate of 15% p. a.