MOHAMMAD SHABBIR SHERIFF Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) This Appeal is filed by the defendants against the judgment and decree in O.S, No. 319 of 1984, dt. 26-9-91, on the file of the Court of the Subordinate Judge, Nuzvid, wherein the suit filed by the respondent herein for recovery of a sum of Rs. 77,463.20 ps. due under mortgage and for subsequent interest was decreed by passing a preliminary decree and for taking appropriate steps with regard to the final decree in the event of non-payment of the decretal amount.

(2.) In this appeal, the attack is made only on the ground that the grant of interest at 12% per annum is not correct and further that in view of the provisions of Act IV of 1938 appellants are entitled for the benefit of scaling down.

(3.) It is not necessary to go into merits of the case as this Court has already considered the question of applicability of the provisions of Act IV of 1938 vis-a-vis the amended provision under Section 21-A of the Banking Regulation Act, 1949 (for short 'the Act') in Union Bank of India vs. G. Shiva Reddy and held that Section 21-A of the Act applies to all transactions prior to or after its coming into force and also applies to suits or appeals pending. Further, in respect of commercial transaction, the interest charges in pursuance of the mortgaged transactions at quarterly or longer rests is perfectly admissible and in respect of the agricultural transactions, the interest charges with quarterly rests is not admissible.