CANARA BANK Vs. LIGHTWAYS

JUDGEMENT

(1.) The present suit has been filed by the plaitiff bank for the recovery of a sum of Rs. l,25,593.80p with costs and interest at the rate of 17 and a half per cent per annum with quarterly rests from 1st November, 1985 till recovery under provision of Order XXXVI of the Code of Civil Procedure. By order dated 26th September, 1986 defendants were granted leave to defend the suit without any condition imposed on them. Thereafter written statement was filed on behalf of defendants and replication was also filed on behalf of I he plaintiff bank. The is sues were framed on 15th November, 1988.

(2.) On 6th January, 1994, learned counsel for the defendants submitted that the defendants want to make statement regarding payment of the suit amount. Accordingly the statements of the defendant No.2, who was the proprietor of the defendant No.l has been recorded today. The statement of Defendant No:3, who is the husband of the defendant No.2 as well as guarantor, lias also been recorded today. In her statement Smt. Pushpa Narula, defendant No.2, have admitted the claim of the plaintiff bank to the extent of the suit amount. She has, however, submitted that she had suffered heavy losses and she had to close down the defendant No.1-firm even prior to filing of the suit. She has further stated that she has no other source of income and has prayed that a decree should be passed against her to the extent of the suit amount and the the should be permitted to pay minimum rate of interest from the date of institution of the suit till the date of payment.

(3.) I have heard the counsel for the parties. The learned counsel for the defendants has drawn my attention to two judgement . this Court in the cases of Canara Bank Vs. M/s. Rajiv Exports & Ors., Suit No. 1882/84, decided on 3rd April, 1986 and Canara Bank Vs. Chowodhary Construction Co, Suit No.850/86 decided on 19th October, 1987 wherein in similar circumstance the pendente lite interest was fixed @ 6% per annum. Taking into consideration the special facts and circumstances of the case, I direct that the suit be decreed for a sum of Rs.1,25,593/80p with costs. However, exercising my discretion under Order 20 Rule 11, I would limit the interest payable on the suit amount to the rate of 6% per annum on the suit amount from the date of institution of the suit till realisation of the amount. This is, however, subject to the condition that the defendants deposit with the plaintiff bank a sum of Rs.25,000.00 within one month from today and shall deposit the balance amount including the amount of interest and costs within one year thereafter i.e. on or before 7th February, 1995. It is further made clear that in case the defendants commit any default regarding making payment of the aforesaid payment of Rs.25,000.00 or the balance amount, the defendants shall be liable to pay the suit amount with 15% p.a. interest from the date of institution of the suit till the date of payment, and suit is decreed in the said terms. This order is further subject to the condition that the defendant No.2 shall not transfer or alienate or otherwise encumber any of the fights in any manner of the properties mentioned in para 4 of the 1A No.6361/8 fill the decretal amount is paid to the plaintiff bank. - Decree sheet may be drawn accordingly. With this order suit stands disposed of.