CATHOLIC SYRIAN BANK Vs. MATHAI

JUDGEMENT

(1.) The above appeal is filed by the Catholic Syrian Bank Ltd. against the judgment and decree in O.S. No. 280 of 1998 of the Additional Sub Court, North Paravur. Appellant is the plaintiff in the suit. The suit was filed by the Bank for recovery of a sum of Rs. 2,00,235/- together with interest from the date of suit till date of realisation at the rate of 15.77% with quarterly rests by sale of the plaint schedule immovable properties and also personally from the defendants. The loan was given to the first respondent for purchasing a motor vehicle on the guarantee of the other respondents for the first respondents commercial purposes. Interest at the contract rate was claimed pendente lite as well as future on the basis that the liability has arisen out of a commercial transaction.

(2.) The respondents, even though served, did not contest. They were set ex parte. On the basis of the claim affidavit on behalf of the appellant - Bank and the documents filed, the court found that the Bank was entitled to a decree. However, while passing the decree, the rate of pendente lite interest and future interest have been reduced to just 6%. The learned Sub Judge has also determined the principal amount as Rs. 1,29,000/-. It is against the above judgment and decree that this appeal is filed.

(3.) Learned counsel for the appellant contended that the court below ought to have granted interest on the principal amount, which was due on the date of filing the suit and not on the amount which was borrowed initially. He further contended that interest should have been at 17%, since it is a commercial transaction. Learned counsel for the respondents however submitted that the lower court has exercised its discretion and hence, it is not proper for this Court to interfere. At any rate, he contended that the interest granted by the court below is reasonable.