UNITED COMMERCIAL BANK Vs. RUPA

JUDGEMENT

(1.) THIS appeal is directed against the judgment and decree passed by the learned Addl. District Judge, Mandsaur in Civil Suit No. 1 -B/81, whereby the lower Court was pleased to decree the suit of the appellant. However, the rate of interest that was granted was 5% per annum.

(2.) THE only point agitated by Mr. Mahajan for the appellant is that the transaction between the appellant and the respondents is commercial and reading the document Ex. P -14, which is agreement, he argued that the contractual rate between the parties was 13% p.a. In that view of the matter, he argues that when the contractual interest is already proved by document contract between the parties, there was no reason for the lower Court not to have granted the contractual rate of interest. He said that the law is very well settled on the point and it does not require any authority to be cited.

(3.) IN that view of the matter, the appeal is allowed to the aforesaid extent. The decree is accordingly modified. The Bank will be entitled to get interest @ 13% and not 5% p.a. A decree be drawn accordingly. The appeal is allowed with costs. Counsel's fees as per schedule.