SUKHCHAIN SINGH Vs. PUNJAB AND SIND BANK

JUDGEMENT

(1.) NOTICE of motion having been issued, this revision is being disposed at that stage. The short question involved in this appeal is about the rate of interest to be allowed to the plaintiff-bank under Section 34 of the Code of Civil Procedure in respect of the loan taken for agricultural purposes in execution of the decree.

(2.) THE Punjab and Sind Bank filed a suit for recovery of Rs. 41,461. 52, which was decreed on July 29, 1980, with 14% per annum interest from the date of institution of the suit till realisation. A sum of Rs. 20,000 was advanced as loan against execution of a pronote and a receipt. The agreed rate of interest was 14% per annum as stated above. It was in execution of the decree that objections were filed. The same were dismissed on September 26, 1989, and the judgment-debtor has come up in revision.

(3.) IT has been argued by counsel for the petitioner that since the loan was advanced for agricultural purposes, in view of Section 34 of the Code of Civil Procedure, only 6% per annum interest could be allowed on the principal amount from the date of the institution of the suit. In support of this contention, reliance has been placed on the decision of this court in Kishan Lal v. State Bank of Patiala [ 1990] 1 PLR 132.