P.C. WADHWA Vs. STATE BANK OF PATIALA

JUDGEMENT

(1.) THIS is plaintiffs' second appeal.

(2.) PLAINTIFFS filed suit for declaration to the effect that they are liable to pay simple interest @ 10.5% p.a. on the loan amount and for mandatory injunction directing the defendants to re-cast the loan account after charging interest @ 10.5% p.a. and return the excess amount charged, if any, to them. Trial Court dismissed the suit. In appeal, the first Appellate Court affirmed the judgment and decree passed by the trial Court.

(3.) THE ARDC in pursuance of its agreement with the Bank, released the necessary advance to the Bank and the Bank thereafter disbursed the loan amount to the plaintiffs. Before the loan was disbursed, loan agreement, Exhibit P-7 was executed between the Bank and the plaintiffs. Clause 2 of the agreement provided for charging of interest. The same read as under :-