FEDERAL BANK LTD Vs. S K ROWTHER

JUDGEMENT

(1.) Appellant was the plaintiff in a suit for money. The first defendant first respondent took a loan of Rs. 14,400/- from the Marthandam Commercial Bank Ltd on November 11, 1967 after executing (i) an agreement Ext. A1 hypothecating a lorry KLQ 4441 -- described in the plaint schedule -- and (ii) a promissory note Ext. A2 along with the 2nd defendant. The loan was to be repaid in 18 instalments at the rate of Rs 800/- a month The Bank had deducted the stipulated interest in full and paid the first defendant only the balance sum of Rs. 12,500/-. All except the last three instalments had been paid off, leaving a balance of Rs. 2899.20 (deducting an over paid sum of 80 ps.). The plaint claimed this amount with interest at 12% thereon from the dates of default to the date of suit. The plaint included a further claim of Rs. 1036.65 being the amounts spent by the plaintiff to get possession of the lorry, to insure it and to issue notices to the defendants. The plaintiff asked for a decree in an aggregate amount of Rs. 3999 74 with interest from date of suit till date of realisation from defendants 1 and 2 and charged on the lorry The third defendant was added as a party as he was in possession of the lorry. The Marthandam Commercial Bank Ltd. was amalgamated with the Federal Bank Ltd. and the suit was filed by the latter Bank.

(2.) In their joint written statement defendants 1 and 2 admitted that Rs. 2399.20 was outstanding but they denied the claim for interest on the ground that interest had already been realised. They also denied the plaintiff's claim for the expenses and the insurance premium. They added that the debt fell within Act 11 of 1970 and they were entitled to all its benefits. By a separate written statement the 3rd defendant substantially adopted these contentions.

(3.) The plaintiff filed a replication seeking to meet the defence pleas.