GANGARAM Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THIS appeal is filed by the defendant challenging judgment and decree dated 13.7.1994 passed in civil suit No. 14B/94 in the Court of II Additional District Judge, Ashoknagar, Guna.

(2.) THE facts of the case are that plaintiff Bank has advanced a sum of Rs. 49,000/ - to the defendant No. 1 for purchase of tractor on 11.6.1981. Appellant failed to repay the loan, 'hence the Bank filed the present suit for recovery of Rs. 51, 340/ - with interest at the rate of 14% per annum. Trial Court decreed the suit in toto and directed the defendant to pay Rs. 51,340/ - with interest at the rate of 14% per annum on half yearly rest.

(3.) I have perused the evidence in the record to prove the case. After perusing the said two documents it is clear that the Bank was authorised to charge 12.5% rate of interest as minimum rate of interest and 3.5% per annum over the Reserve Bank of India rate. In this case the Bank has examined only one witness Ramnarayan Jaiswal, (PW 1). Ramnarayan Jaiswal (PW 1) in his statement has nowhere proved the rates fixed by the Reserve Bank of India and, therefore, the Bank is entitled to charge 12.5.% interest only. No doubt it is true that the document Ex. P -2 provides for charging quarterly rests, however, the agreement Ex. P -3 provides for half yearly rest.