PALAI CENTRAL BANK LTD. Vs. C. RAMASWAMI NADAR

JUDGEMENT

(1.) These two appeals arise from an order, dated 17-2-1957, made by the learned District Judge of Trivandrum in the proceedings before him to execute the decree of the Nagercoil District Court in O.S. No. 66 of 1953. The Nagercoil District Court had transferred the decree to the Trivandrum District Court for execution and when the decree holders, the Palai Central Bank Ltd., applied for execution, judgment debtor No. 1, (defendant) raised objections thereto on two grounds. The learned District Judge repelled one objection and accepted the other. Hence these two appeals, one by the decree holders Bank and the other by judgment - debtor No. 1.

(2.) For a proper appreciation of the objections raised to the execution it is necessary to state a few facts. The suit O.S. No. 66 of 1953, was on the basis of an overdraft security bond (Ext. A in the suit) which judgment - debtor No. 1 had executed in favour of the decree holder Bank and that agreement provided for advances to be made to a limit of Rs. 75,000. The plaint claim, however, came to Rs. 1,51,514/8. This was because the security bond sued upon contained a provision that in case interest at the stipulated rate or any portion thereof remained unpaid for a period of six months, arrears of interest would be treated as principal and added on to the original or previous principal and that interest would be paid at the stipulated rate on the sum so arrived. Indeed some time before the institution of the suit defendant 1 had accepted the liability on this basis and sent letters to the Bank confirming the correctness of the balance they claimed. The judgment in the case, a certified copy of which was made available to us by the decree holders counsel, shows these details.

(3.) In the plaint the plaintiffs Bank claimed 12% interest on the entire claim of Rs. 1,51,514/8/- till the date of the decree and thereafter till realisation at 9% per annum on the aggregate sum. Defendant 1 contested the suit on various grounds, but the court passed a decree in terms of the plaint subject to the modification that from the date of the institution of the suit till the date of the decree the plaint claim would carry interest only at 9% per annum and thereafter until realisation only at 6% per annum on the aggregate amount of the decree. The Plaintiffs Bank were also allowed their costs of the suit.