SATYANARAYAN UMRAOLAL AGRAWAL Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) The appellant-original defendant has filed this appeal challenging the judgment and decree dated 31-3-1982 with respect only to the granting of future interest at 10 p. c. p. a. on the decretal amount of Rs. 37,236.57 from the date of suit till realisation.

(2.) The respondent-original plaintiff Bank filed a suit against the defendant for recovery of Rs. 46,276.51 by sale of mortgaged property of the defendant. It appears that the parties filed a joint pursis Exh. 43 showing the outstanding dues against the defendant inclusive of interest till date of suit at Rs. 37,276.51 and submitted that for this amount decree be passed in favour of the plaintiff and against the defendant. The learned trial Judge passed a decree for this amount against the defendant and in favour of the plaintiff and also awarded interest at 10 p. c. p a. from the date of suit till realisation along with costs of the suit against the defendant vide judgment and decree dated 31-3-1982. The defendant has challenged in this appeal only the rate at which future interest is granted.

(3.) The learned Counsel for the defendant Shri M. G Bhangde urged that this suit was filed by the plaintiff on 18-2-1976 and was, therefore, governed by the unamended section 34 of the Code of Civil Procedure. The amended section 34 is applicable only to suits instituted after 1-7-1977. Hence the trial Court had no jurisdiction to grant future interest more than 6 p. c. p. a. from the date of suit till realisation of the decretal amount. There is considerable substance in this contention.