CENTRAL BANK OF INDIA Vs. VET PHARM

JUDGEMENT

(1.) THE plaintiff in O.S.No.19 of 1983 on the file of the Subordinate Court, Tiruvallur, is the appellant. This appeal is filed by the appellant, aggrieved by the grant of decree passed by the trial Court in awarding 6% interest from the date of decree.

(2.) THE case of the plaintiff as per the plaint is as follows: The plaintiff/ appellant sanctioned a term loan of Rs.8.09 lakhs on 23.7.1979 and a cash credit of Rs.1.90 lakhs as working capital to the defendants/ respondents and as a security for the above credit facilities the defendants/ respondents executed the term loan agreement dated 13.8.1979 for Rs.9.99 lakhs agreeing to repay the said amount with interest at 10% p.a. with quarterly rests. They have also executed an agreement of hypothecation of even date hypothecating the machineries poultry equipments, hatchers poultry flock etc. and another hypothecation agreement dated 13.8.1979 hypothecating the live stocks . It is further case of the appellant/ plaintiff that the defendants 2 to 7 as partners of the 1st defendant firm have also executed a demand promissory note for a sum of Rs.9.99 lakhs on 13.8.1979 agreeing to repay the same with interest at 10% p.a. with quarterly rests. As the respondents/ defendants failed to repay the amount, the suit was filed for recovery of the amount at the rate of 11.5% p.a. till realization and for costs.

(3.) ON the basis of the above pleadings the trial Court framed the following issues: