JAGDISH RAI Vs. PUNJAB STATE THROUGH THE COLLECTOR

JUDGEMENT

(1.) THE present Regular Second Appeal arises out of a judgment and decree passed by the District Judge, Ferozepur, dated 13.1.1984, whereby the judgment and decree passed by the trial Court, dated 17.4.1974 was reversed.

(2.) BRIEF facts of the case are that the appellant was sanctioned a loan of Rs. 10,000/- by the respondent-State in October, 1966. The amount was to be repaid in three instalments due on 10.10.1968, 10.10.1969 and 10.10.1970 with interest @ 3% per annum. By a general order, the respondent-State permitted the extension of one year for the repayment of the three instalments, and consequently, the same became payable on 10.10.1969, 10.10.1970 and d10.10.1971. As the appellant delayed the payment of the first instalment, which was paid on 15.12.1969 and as the payment of the balance amount of Rs. 7,000/- was also delayed (paid on 9.1.1973), he paid interest of Rs. 318/- on 11.12.1968, Rs. 300/- on 27.12.1969 and Rs. 356/- on 15.12.1969. Thus, a total sum of Rs. 974/- was paid on account of interest. Before the appellant made the payment of Rs. 7,000/- on 19.1.1973, the respondent-State served upon him a notice of demand, dated 10.11.1972, directing him to make payment of Rs. 9935/- towards the outstanding instalments as also the interest @ 9% per annum.

(3.) THE State of Punjab referred an appeal before the District Judge, Ferozepur, vide judgment and decree dated 13.1.1984, the District Judge, Ferozepur reversed the judgment of the trial Court, accepting the appeal and dismissed the suit. Thus, in essence, the first appellate Court upheld that notice of demand, which required the appellant to pay interest @ 9% per annum.