SYNDICATE BANK Vs. HAND TOOLS INDIA

JUDGEMENT

(1.) This is an appeal against the judgment and decree dated May 31, 1984, passed by the learned VIth Additional District Judge, Ghaziabad, decreeing, inter alia, pendente lite and future interest at the rate of 6 per cent. per annum.

(2.) Briefly, the facts are that the term loan of Rs. 4,00,000 was sanctioned to the respondent-firm, but actually the loan to the extent of Rs. 3,20,000 was taken by the firm. The loan was advanced with interest at the rate of 16 per cent. per annum.

(3.) A suit for recovery was filed by the appellant against the respondent-firm, partners thereof and the guarantors, which was decreed by the order dated May 31, 1984. The trial court awarded pendente lite and future interest, i.e., from the date of filing the suit till the date of recovery, at the rate of 6 per cent. per annum only. The interest at the rate of 6 per cent. per annum was awarded taking into consideration the plea advanced by the respondents that the respondent-firm suffered huge losses. The short contention of learned counsel for the appellant before the court is that no cogent evidence was produced by the respondents to show that the respondent-firm suffered huge losses and, therefore, the trial court erred in awarding interest at the rate of 6 per cent. per annum only.