VIJAYA BANK GUNTUR BRANCH Vs. KOMMAREDDY JAJI REDDY

JUDGEMENT

(1.) The appellant had preferred an appeal as against the judgment and decree made in OS No. 149 of 1985 dated 18-8-1986 on the file of the Principal Subordinate Judge, Narsaraopet, insofar as it relates to the non-awarding of the contractual rate of interest.

(2.) The main contention of the appellant-bank is that the Court below should have granted interest @ 14.75% per annum with quarterly rests, as prayed for, and the Court below had erred in granting interest only @ 12 1/2% per annum with proportionate costs.

(3.) The appellant had instituted a suit for recovery of amount of the strength of a mortgage deed. The case of the appellant/ plaintiff, as averred in the plaint, is that the defendant Nos. 1 to 6 and one late Gnanaprakasam borrowed a sum of Rs. 9,000.00 from the appellant-plaintiff and had executed a demand promissory note on 19-10-1976 agreeing to repay the interest at 6% over the bank rate of interest with minimum of 15% of quarterly rests and they had also executed a letter and a mortgage deed and the third defendant and Gnanaprakasam, in fact, had acknowledged the liability on 7-8-1979, 4-7-1979, 22-2-1982, 12-7-1982 and thereafter Gnanaprakasam died leaving behind defendant Nos. 4 to 6 as legal representatives in the suit. Since, inspite of repeated demands, the amount was not repaid, the suit was instituted.