ORIENTAL BANK OF COMMERCE Vs. DEVI PRASAD VERMA

JUDGEMENT

(1.) RESPONDENT No. 1 obtained a loan from the plaintiff-bank for purchase of a truck. Respondents Nos. 2 and 3 are the guarantors. The loan of Rs. 1,03,000 was to carry interest at the rate of 15 per cent, per annum with half-yearly rests. The truck was purchased and part payment made. The bank had to sue the respondents for outstanding dues and obtained a decree in C. S. No. 17b of 1982, of the Court of District Judge, Ratpur. All the crucial issues were held in favour of the bank but the learned District Judge did not award any interest pendente lite and awarded interest at 6 per cent, per annum from the date of decree till realisation. It is this finding as to award of interest which is under challenge in this appeal by the bank.

(2.) RELIANCE was placed by the appellant's learned counsel on the following observations of this court in Bharat Engineering v. Punjab National Bank [1987] 2 Bank CLR 329 :

(3.) SECTION 24 of the Banking Laws (Amendment) Act, 1983, inserting Section 21a in the Banking Regulation Act, 1949, which came into force on February 15, 1984, is quoted below :