KHAMBATA ENTERPRISES Vs. BANK OF MAHARASHTRA

JUDGEMENT

(1.) Appellant is resisting a money decree for Rs. 48,976.00 with 12% interest. His only grievance seems to be that the Trial Court had disapproved charging the penal interest and yet had calculated it in drawing up the decree and that the award of contractual rate of 12% interest was harsh and excessive in the facts and circumstances of the case. It is pointed out that appellant had borrowed a principal amount of Rs. 90,000.00 or so roughly and that the respondent-Bank had taken over its factory and had also charged interest at contractual rate for the period of closure. Since it could not run the factory for this period it could not repay the loan amount at rate of interest.

(2.) Heard learned Counsel and examined the record. Given regard to facts and circumstances of the case and the bona fide shown by appellant in repaying the loan amount, we deem it appropriate to modify the impugned decree to provide that no penal interest shall be charged from appellants and that future interest from the date of suit shall also be realisable @6% p.a. interest. The impugned decree shall stand amended accordingly to dispose of this appeal with no order as to costs. Appeal disposed of.