CHANDRAKANT KANTILAL SHAH Vs. SARVODAYA CO OP BANK

JUDGEMENT

(1.) THE short facts of the case appear to be that respondent Bank filed Lavad Suit No. 1346/1980 against K. G. Medical Stores and others, including the petitioner herein for recovery of the amount of Rs. 69,578. 67. It appears that the petitioner was joined as the partner of the firm. The Nominee vide order dated 26. 4. 1984 decreed the said suit by passing the award and awarded interest at the rate of 20% per annum and the cost is also awarded of Rs. 515/ -. The petitioner preferred appeal against the judgement and award of the Nominee being appeal No. 130/1984 before the Tribunal. The Tribunal vide order dated 19. 11. 1985 dismissed the appeal and it is under these circumstances, the present petition before this Court.

(2.) I have heard Mr. Jitendra G. Sheth with Mr. K. G. Sheth for the petitioner.

(3.) CONSIDERING the facts and circumstances, it appears that the principal grievance is on the ground of awarding of penal interest at the rate of 3% by the learned Nominee and its confirmation thereof by the Tribunal. It appears that the petitioner has not submitted any written statement in the complaint and, therefore, the Tribunal has found that the award passed by the Nominee cannot be said as illegal. It further appears from the award passed by the Nominee that the deposition of the officer was recorded and the documents for loan transactions were also exhibited including the promissory note. Based on the same, the Nominee has found that the contractual rent was 17% and 3% was the penal interest and, therefore, the plaintiff is entitled to recover interest at the rate of 20%. The Nominee has further recorded that no evidence is produced on behalf of the defendant and, therefore, the award has been passed.