MOTILAL Vs. BANK OF INDIA

JUDGEMENT

(1.) THIS judgment shall also govern disposal of Bank of India v. Sushilabai and Anr. , First Appeal No. 14 of 1984, arising out of the same judgment and decree dated 1. 7. 1983, passed in Regular Civil Suit No. 9-A/82. While the former appeal is against the award of interest on agriculture loan, the latter is for correcting calculation mistake in para 32 of the judgment.

(2.) BRIEF facts of the case are that the plaintiff/bank of India filed a suit for the recovery of Rs. 21,398. 81 alongwith interest and for future interest @ 13% p. a. The plaintiff also prayed for a decree for the recovery of the amount for the mortgaged land and hypothecated movable property. After trial, by the impugned judgment and decree the Trial Court decreed the suit for a sum of Rs. 15,180/- with corresponding costs and the future interest on Rs. 14,105. 77 @ 11% p. a. till the date of recovery of the amount, against which both the parties have filed these appeals.

(3.) I have heard the learned Counsel for the parties and perused the record. So far as F. A. No. 91/83 is concerned, this appeal is fully covered by the decision of this Court in the case of State Bank of Indore v. Smt. Parwatibai, 1992 R. N. 381, in which Mr. Justice R. C. Lahoti (as he then was) has clearly held that when land is mortgaged in favour of the Nationalised Bank and if there is dispute regarding rate of interest or maximum amount of interest, the ceiling limit of interest contemplated under Section 165 (3) of the M. P. Land Revenue Code, 1959 is not attracted. The provisions of Section 24 of the Krishi Udhar Pravartan Tatha Prakirna Upbandh (Bank) Adhiniyam, 1972 would over-ride the provisions of Sub-section (3) of Section 165 of the M. P. Land Revenue Code. The plaintiff-Bank being a Bank within the meaning of Section 2 (c) (iii) of the Adhiniyam, Section 24 of Krishi Udhar Adhiniyam, Section 24 of the Adhiniyam would exclude the applicability of ceiling limit prescribed by Sub-section (3) of Section 165 of the Code to the case in hand.