CANARA BANK Vs. B PATHU

JUDGEMENT

(1.) A interesting question raised in this regular second appeal preferred by the Plaintiff Canara Bank is concerning the payment of interest on loan advanced, both prior to the suit and after filing of the suit.

(2.) ). The admitted facts are that a loan of Rs. 28,000-00 was granted by the plaintiff/bank to the defendant on 31-5-1985 with a promise to repay the same with interest at 10% per annum compounded quarterly. On 28-5-1985 itself, the defendant deposited the title deed with intention to create equitable mortgage as further security for the due payment. Claiming a sum of Rs. 62,063-00 as due including the interest calculated at the rate of 10% quarterly, the plaintiff sought preliminary decree on mortgage and also prayed for future interest at the rate of 17. 5% per annum with half yearly rests.

(3.) RAISING various defence, the defendant contested the rate of interest and also the correctness of the accounts. Ultimately the trial Court granted the decree for the principal for a sum of Rs. 28,000/- and directed the payment of interest @ 10% per annum on the above principal as simple interest from the date of suit till realisation. Not satisfied with the way in which the accounts maintained by the bank, the trial Court fixed the admitted principal at Rs. 28,000/- and directed the payment of that principal sum alone while granting the decree; the first Appellate Court found itself in consonance with the findings rendered by the trial Court and dismissed the appeal preferred by the Bank.