CANARA BANK Vs. VIJAY SHAMRAO GHATOLE

JUDGEMENT

(1.) THE plaintiff Bank has preferred the instant appeal against the judgment and decree of the learned trial Court mainly on the ground of interest granted by it.

(2.) THE facts are that on 7. 1. 1982 the plaintiff Bank agreed to advance the loan of Rs. 1,64,000/- to the defendant No. 1 on execution of the pronote Exh. 44 by him. However, it is not in dispute that the actual loan granted to him was in the amount of Rs. 1,62,283/ -. It is the case of the plaintiff that the said loan was advanced to the defendant No. 1 at the agreed rate of interest of 2. 5% P. A. above the Reserve Bank of India rate with a minimum of 12. 5% P. A. The said loan was guaranteed by the defendant nos. 2, 3 and 4 out of whom the defendant No. 2 is the father of the defendant No. 1. There was also a deed of hypothecation executed by the defendant No. 1. The defendant No. 1 made some repayments towards the loan and the interest. It is the case of the plaintiff Bank that on 2. 8. 1984 the defendant No. 2 who was the guarantor executed an acknowledgment Exh. 39 acknowledging the liability in the amount of Rs. 2,17,532/-, inclusive of interest upto 30. 6. 1984, and further binding him for repayment of the said amount in accordance with the relevant agreement executed by him and obligations undertaken thereunder. It is further the case of the plaintiff Bank that on 4. 12. 1985, the defendant No. 1 himself had acknowledged the liability in the amount of Rs. 2,27,969/- inclusive of interest upto 13. 10. 1985 by executing the document to that effect which is Exh. 40 by which he had also undertaken to repay that amount with future interest and other charges etc. in accordance with agreement/obligations etc. undertaken by him.

(3.) ACCORDING to the plaintiff Bank the LPD. A/c-59/85 of the defendant No. 1 showed that as on 7. 1. 1987 an amount of Rs. . 2,34,726. 13 ps. was due in the account of the defendant No. 1 whereas upto that day he has made payment of Rs. 3,953/ -. It is its case that no interest was charged in this LPD. A/c 59/85 from 14. 10. 1985. Therefore, when no payment was made in this account by the defendant No. 1 the suit was filed by the plaintiff bank on 29. 4. 1987 for the recovery of Rs. 2,30,773. 13 ps. upon which the interest was calculated as Rs. 50,801. 02 ps. from 14. 10. 1995 till the date of the suit. Thus, the total amount claimed in the suit was Rs. 2,81,574. 38 ps.