LIBERTY KNITWEAR Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) THIS petition has been filed against rejection of objections of the petitioner against execution of decree passed in favour of the Respondent-Bank for recovery of Rs. 2,86,425.68. Mainly, two objections were raised, namely - (i) Goods worth Rs. 75,210/- were taken into possession by the Bank on 30.4.1981 but value thereof was not adjusted against the principal amount. (ii) Interest could be awarded only on the principal amount adjudged under Section 34 CPC but future interest has been awarded not only against the principal amount but also merging component of interest in the decretal amount.

(2.) LEARNED counsel for the petitioner relied on judgment of the Apex Court in Lallan Prasad v. Rahmat Ali and another, AIR 1967 SC 1322, para 17 and submitted that value of the pledged goods had to be reduced from the decretal amount. Learned counsel for the decree-holder-respondent opposed this contention and supported the view taken in the impugned order wherein it was observed that the objectors could not take advantage of their own wrong. The Bank moved an application for sale of the goods, the same was opposed and the court declined to permit the same to be sold. Further in the main judgment, the Bank had offered that the Judgment-debtor was free to take the goods and the plaintiff was willing to adjust the sale proceeds if the goods were allowed to be sold.

(3.) ON the question of interest, judgment of the Apex Court in Central Bank of India v. Ravindra and others, AIR 2001 SC 3095 : 2002(1) RCR(Civil) 49 (SC) lays down that "the principal sum adjudged" included the amount of interest charged on periodical rests and capitalised with the principal sum actually advanced so as to become an amalgam of principal and interest in such cases where it is permissible as per contract. In the present case, the amount claimed in the suit which included interest also has to be held to be principal sum adjudged for purposes of Section 34 IPC for calculation of future interest. Objection of the petitioner that component of interest could not be included in the principal sum adjudged could not, thus, be accepted, as rightly held by the trial court. For the above reasons, I do not find any merit in this petition and the same is dismissed. Petition dismissed.