GOOD LUCK TALKIES Vs. BANK OF MAHARASHTRA

JUDGEMENT

(1.) This the defendants appeal against the preliminary decree dated 3rd May, 1980 passed by the learned Civil Judge (Senior Division), Alibag, in favour of the respondent-Bank. Defendant No. 1 is a partnership firm while defendants Nos. 2 to 5 are its partners. The defendants executed a registered simple mortgage deed in favour of the plaintiff on 23rd December, 1969 and obtained a loan of Rs. 2,00,000 against the same. The amount was liable to be returned within five years as specified in the mortgage deed. Interest was agreed initially to be paid at the rate of 9 % per annum and was liable to be computed at quarter, rests. In the event of non-payment of interest in cash, the same was liable to be debited to the defendants account and further interest was liable to be calculated on the amount due inclusive of unpaid interest. The Bank was also authorised to vary the rate of interest from time to time. By the time the suit came to be instituted, interest was raised to 16% per annum. The defendants also executed a promissory note on 22nd July, 1978 acknowledging the amount due on that date and agreeing to pay interest thereon at the rate of 16% p.a.

(2.) This suit was instituted on 26th April, 1979 claiming an amount of Rs. 3,79, 199-50 with future interest at 16% p.a.

(3.) The defendants resisted the suit on several grounds. On these pleadings issues were framed. It is unnecessary to refer to the same in detail as the factual aspects were not agitated before us in this appeal by Mr. Agarwal, the learned Advocate appearing for the appellants.