K V GEORGE Vs. FEDERAL BANK LTD

JUDGEMENT

(1.) Petitioners in all the above cases filed the above revision petitions against the orders passed by the Court below dismissing the applications to correct the mistake crept in the judgment and decree passed by the Court below. Petitioners filed the applications under S.152 CPC. The Court below dismissed the application in view of the decision reported in Dwaraka Das v. State of M.P. ( 1999 (2) KLT SN 27 ). Aggrieved by the said orders the petitioners have filed the above revision petitions.

(2.) Admittedly, the petitioners in the above petitions have availed of agricultural loan agreeing to repay the same with 11.5% interest. As they have committed default in paying the amount, the respondent filed suits against the petitioners for realisation of the amount claiming 17.25% interest per annum compounded quarterly. As the petitioners remained ex parte the Court decreed the suits in terms of the plaint. From the judgment it is seen that the Court has not applied its mind regarding the rate of interest claimed in the petition. The respondent cannot realise more than the contract rate of interest especially when it is an agricultural loan. Therefore, the rate of interest claimed in the suit is not legally due to the plaintiff. Simply because the petitioners have not contested, the Court cannot award more interest than the contract rate of interest.

(3.) It is submitted that S.152 CPC cannot be invoked in this case to correct the judgment and decree because the mistake crept in is not a clerical error or accidental omission as held by the Apex Court in Dwaraka Das v. State of M.P., 1999 (2) KLT SN 27. In that case, what is the Apex Court has stated is, that-