LAXMINARAYAN AND TWO ORS Vs. BANK OF INDIA

JUDGEMENT

(1.) This appeal arises out of judgment and decree dated 25.1.1990 passed by the Second Additional District Judge, Sehore at Nasrullaganj in Civil Suit No. 150-B/87 decreeing the suit.

(2.) The appellant No. 1 secured a loan of Rs. 6,000/- from the respondent/Bank on 11.5.1978 for purchase of bullocks and buffaloes with interest @ 12.5% per annum with quarterly rest and also executed a mortgage deed. The appellant Nos. 2 and 3 stood as a guarantor and executed letter of guarantee. On default of payment of loan amount the respondent/Bank filed the instant suit for recovery of Rs. 30,168.16/- and interest pendente lite and future. The Trial Court decreed the suit with interest @ 12% per annum.

(3.) Mr. S.C. Jain, learned Counsel for the appellants has contended that the loan was admittedly advanced to appellant No. 1 for agricultural purposes. Therefore, pendente lite and future interest should have been awarded @ 6% under Section 34 of the Civil Procedure Code and not on the aggregate of principal and interest accrued on the date of institution of the suit.