STATE BANK OF INDIA Vs. NEERU PLASTICS WORKS

JUDGEMENT

(1.) The plaintiff, State Bank of India, filed the present suit for recovery of Rs. 93347.18 p. on account of amount due under the Cash Credit (Factory Type) account with interest up to 25th April, 1977 by sale of pledged goods and the machinery accepted as collateral security towards satisfaction of the aforesaid amount and also by sale of the property, the details of which were given in the plaint.

(2.) The suit was contented on behalf of the defendants-respondents. Ultimately, the trial Court decreed the plaintiff's suit and passed a decree in the following terms:-

(3.) The learned counsel for the appellant vehemently contended that the present suit was not a simple suit for the recovery of money but was a suit for the recovery of money by sale of the immovable or immovable property as contemplated under Order 34 of the Civi1 Procedure Code. Thus urged the learned counsel that the plaintiff was entitled to the rate of interest not under Section 34 of the Civi1 Procedure Code but under Order 34 Rule 11. thereof. It was also contended that the words in Order 34, Rule 11, "on the principal amount found or declared due on the mortgage" not only mean the principal amount but also the amount due on interest, which has become part of the principal. In support of this contention he referred to Jafar Husain v. Bishambhar Nath, AIR 1937 All 442, Mangat Rai v. Babu Singh, AIR 1927 Lahore 445: and Punjab and Sindh Bank Ltd. v. Roora Mal Sodhi, (1969) 71 Pun LR 310.