STATE BANK OF INDIA Vs. GANESH VISHVAMBER PUNDE

JUDGEMENT

(1.) THIS appeal has been filed by the State Bank of India being aggrieved by the judgment and decree dated 19-9-1987 passed by the civil Judge, Sr. Dn. , in Special Civil Suit No. 36 of 1986, whereby the suit of the appellant/ plaintiff was decreed for recovery of the amount of Rs. 64,317=34 including interest on admission of defendant No. 1/borrower and defendants nos. 2 and 3 as guarantors and also directing payment of future interest at the rate of 9% per annum on the decretal amount from the date of the suit till realisation.

(2.) BRIEF facts are required to be stated as under : the plaintiff/state Bank of India instituted a suit for recovery of Rs. 64,317. 37 inclusive of interest against the borrower and the guarantors on the contentions that the defendant No. 1 borrowed amount of Rs. 59,000/- which was disbursed to him on hypothecation of vehicle, i. e. Bajaj Matador Pick up van, on 23-1-1982. The defendant No. 1 had executed the requisite documents in favour of the bank and it was agreed that the rate of interest would be 12. 50% with quarterly rests and also agreed to pay interest as per the rates prevailing therein as fixed by Reserve Bank of india from time to time.

(3.) THE defendants did not contest the suit and filed pursis (Ex. 25) and withdrew all their contentions mentioned in the written statement and agreed to repay the decretal amount by way of instalments. The plaintiff/bank had no objection to grant instalments and, therefore, the trial Court granted decree for recovery of the loan amount with future interest at the rate of 9% per annum from the date of the suit till realisation. This judgment and decree granting future interest at the rate of 9 % instead of granting at the rate of 15% per annum is under challenge in this appeal.