PUNJAB NATIONAL BANK Vs. SATINDER KUMAR CHOPRA

JUDGEMENT

(1.) THE present appeal is preferred by the appellant Bank against the judgment and decree dated 26. 04. 1997 passed by the learned ADJ in a suit registered as suit No. 697/93 instituted by the appellant against the respondents.

(2.) BRIEFLY stated, the facts of the case are that a suit for recovery of rs. 2,48,825/- was filed by the appellant/bank against the respondents/defendants in the year 1990. The respondents filed a written statement. After the pleadings were completed and the documents filed by the parties were yet to be admitted or denied, efforts for arriving at a negotiated settlement were initiated. In the course of the proceedings itself, the respondents paid the amount of Rs. 2,49,000/- to the appellant thus, leaving only the question of payment of interest from the date of institution of the suit till the date of realization of the suit amount. It is pertinent to note that the entire amount of Rs. 2,49,000/- was liquidated in four installments between the period w. e. f. 29. 03. 1996 to 02. 04. 1997.

(3.) THE learned Addl. District Judge relied upon a judgment passed by the High court of Delhi in the case of State Bank of India vs. P. K. Sethi and Ors. reported as 54 (1994) DLT 659 and awarded interest in favour of the appellant @ 6% per annum, apart from the costs of suit on the ground that as per the law laid down in the aforesaid judgment, the suit amount had been paid by the respondents to the appellant/bank during the pendency of the suit proceeding and hence, the respondents were entitled to reduction of the rate of interest for the period from the date of institution of the suit, till the date of realization thereof.