MOHINDER SINGH Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) UNION Bank of India filed a suit for recovery of certain amount against the petitioner. The suit was decreed for a sum of Rs. 13,301. 45 P. with costs The Bank was also allowed future interest at the rate of 12 percent per annum from the date of institution of the suit till the date of realisation of decretal amount. However, the payment was not made by the petitioner, The Bank preferred execution of the decree, to which the petitioner preferred Objections by stating that the amount of interest cannot be more than six percent per annum in view of the provision of Section 34 of the Code of Civil Procedure. He therefore, claimed that decree to that extent has to be passed and he is only liable to pay interest at the rate of 6 per cent per annum. Objections preferred by the petitioner were dismissed. The petitioner has now impugned the said order in the present revision petition.

(2.) MR. O. P. Sharma, learned counsel appearing for the petitioner has vehemently argued that the Bank is not entitled to claim interest at the rate of 12 per cent per annum He made a reference to Section 84 of the Code of Civil Procedure as well as to a judgment of this Court rendered in Makhan Singh v. Union Bank, (1989-1) 95 P. L. R. 703, wherein it was held that interest not exceeding 6 per cent per annum can be paid.

(3.) ON the other hand, Mr. V. K. Vashisht, learned counsel appearing for the respondent, has submitted that the executing Court cannot go beyond the decree once the interest was allowed at the rate of 12% per annum, and the respondent is entitled to recover the same.