VASUNDHARA LORRY SERVICE Vs. VYSYA BANK LTD

JUDGEMENT

(1.) THE issuance of the modified certificate by the impugned order dated 13. 6. 97 is challenged by the Original Defendants, hereinafter referred to as Judgment Debtors in this Appeal.

(2.) BEFORE appreciating the challenge it is necessary to know chequered history as well as the undisputed facts on record : judgement Debtors (in short JDs) had obtained the loan facilities from the Applicant Bank prior to 1981. When the account became irregular and when the JDs committed defaults in repayment, the Bank had filed Suit No. 1512/81 in City Civil Court, Bangalore on 25. 5. 81 for the recovery of Rs. 31,23,106. 34 alongwith the future interest. The said suit was compromised and the compromise decree was passed on 31. 1. 85 (Annexure 'a' of the Appeal Memo ). Under the terms of compromise JDs were liable to pay the entire dues before 31. 12. 85. The concession or the relief in the rate of interest from 12 per cent to 6 per cent was agreed to be granted if the terms and conditions laid down in the decree were fulfilled by JDs. The JDs did not comply with the terms of the compromise and as such they were not entitled in the deduction of the rate of interest. In short, they were liable to pay the interest on Rs. 31,23,106. 34 at 12% per annum.

(3.) THE Bank initiated the execution proceedings bearing No. 396/86 for the recovery of its dues calculated at Rs. 50,89,628. 00. The execution proceedings were pending in City Civil Court Bangalore till 21. 11. 94 when the first sale proclamation was issued. The property belonging to JDs was directed to be sold on 16. 12. 94.