V PETHAPERUMAL Vs. SYNDICATE BANK

JUDGEMENT

(1.) NOTICE of motion was ordered returnable by four weeks on March 10, 1995. On service of notice the respondent entered appearance through counsel. By consent of both the parties the main revision itself is taken up for final hearing.

(2.) THE petitioners herein are the defendants in the suit. THE respondent filed O. S. No. 180 of 1991 against the petitioners for recovery of money on the basis of a mortgage. THE trial court passed a preliminary decree on January 14, 1992, on the basis of a joint endorsement made. According to the petitioners, they came to know of the decree that there were some clerical errors, viz., the subsequent interest is charged on the aggregate suit claim instead of the principal sum. Under those circumstances, they moved an application under section 152 of the Civil Procedure Code, 1908, for amending the decree on the basis of section 34 of the Civil Procedure Code. THE application was resisted by the respondent-bank. THE learned Subordinate Judge dismissed the application filed by the petitioners herein for amending the decree. Against the order passed by the lower court on September 26, 1994, the petitioners have filed the present revision in this court.

(3.) IT is also stated that as per section 34 of the Civil Procedure Code, the court may order interest at such rate as the court deems reasonable to be paid on the principal sum adjudged from the date of suit to the date of the decree if the decree is for payment of money. In the present case, the court has awarded subsequent interest at 18. 5% per annum and the said rate of interest from the date of the decree to the date of payment cannot be granted and while awarding interest at 18. 5% per annum, the lower court has failed to exercise its jurisdiction which is given to it to fix the subsequent rate of interest from the date of the decree. IT is also contended that the court has not given any reason for charging interest at 18. 5 per cent. per annum compounded quarterly which is contrary to section 34 of the Civil Procedure Code. According to the petitioners, further interest from the date of suit to the date of realisation can be only simple interest as per section 34 of the Civil Procedure Code, and there cannot be a compound interest.The petition was resisted by the respondent-bank by filing a counter-statement. According to them, the principal amount is only a sum of Rs. 1, 16, 278. 50 and that the bank is entitled to charge interest at the contract rate at 18. 5 per cent. per annum from the date of the decree till realisation and that the court has rightly decreed the suit as prayed for on the basis of the joint endorsement made.