DENA BANK Vs. MEGHRAJ CONTRACTOR AND OTHERS

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dated 17.7.94 in Civil Suit No. 9-A/90 by IVth Additional District Judge, Raipur, whereby though the suit of plaintiff/appellant Bank for recovery of loan advanced by it to the respondents/defendants was decreed, but the rate of interest from the date of suit till repayment thereof was awarded at the rate of 6.5% per annum, which was lower than the contractual rate.

(2.) The plaintiff/Bank filed a suit against respondents for recovery of balance of amount of loan advanced to them in various heads viz., Rs. 4,46,474-51 p. as cash credit (hypothecation loan amount), Rs. 2,67,144-20 p. as term loan (Working Capital) and Rs. 1,15,121-50 p. as term loan (Jeep). The appellant claimed interest @ 16 1/2% on cash credit (hypothecation loan amount) as also on term loan (working capital), while 15% on term loan (Jeep), from date of suit till realisation.

(3.) The suit was resisted by the defendants on various grounds. However by the impugned judgment the Trial Court granted a decree for a total sum of Rs. 8,28,740-11 p., which was the sum total of the loan granted by the plaintiff to the defendants on the three heads as mentioned above. However, so far as interest is concerned, future interest @ 6.5% p.a. from the date of suit till recovery thereof on the principal amount of Rs. 5,50,000-00 p. @ 6.5% p.a. was granted. In this appeal the only challenge by the appellant Bank is regarding the interest awarded as above.