M S SURYANARAYANA IYER Vs. SYNDICATE BANK NELLOR

JUDGEMENT

(1.) This Judgment will dispose of both the appeals since they are interconnected.

(2.) The Syndicate Bank, Nellore Branch represented by its Manager laid the suit OS No. 53/79 in the Court of Subordinate Judge, Nellore, for recovery of Rs. 2,22,953-10 from the defendant M. S. Sutyanarayana Iyer, It was pleaded by the plaintiff-Bank that from 29-11-71 to 15-11-72 vinous secured loans were advanced to the defendant and so be executed a stamped receipt on 15-11-72 for rupees 2 lakhs to cover the advance made till then, an agreement Ex. A-7 was also executed by him on 15-11-72 in favour of the Bank undertaking to repay the same with interest at 5% above the Reserve Bank of India rate and subject to a minimum of 11% per annum. The loan was required to be repaid in monthly instalments of Rs. 4,000/- commencing from 15-12-72. In case of default, in the payment of interest or the instalments of principle amount, the amount outstanding on the date of default shall bear such higher rate of interest as the Plaintiff-Bank may fix from time to time. The liability was acknowledged by the defendant on 4-11-75. Ex. A-1 is the agreement executed by the defendant acknowledging his liability in a sum of Rs. 2,12,739-50 paise which he undertook to pay in monthly instalments of Rs. 8,000/- commencing from 1-11-77. As per the statement of account filed,, the amount due was Rs. 2, 22, 953-10 by the date of the suit.

(3.) Resisting the suit the defendant filed written statement contending that he made payments to the tune of Rs. 1,91,846-20 paise towards the suit debt. The Bank charged interest at quarterly rests and the interest so charged is highly excessive and opposed to Usurious Loans Act.