PUNJAB NATIONAL BANK Vs. ANUP SINGH

JUDGEMENT

(1.) CHALLENGE in the present Regular Second Appeal is to the judgment and decree passed by the Courts below, to the extent that future interest @ 6% p.a., has been awarded instead of agreed rate of 17 -1/2% p.a. with half yearly rest, claimed by the plaintiff -appellant. The plaintiff -appellant filed a suit for recovery of Rs. 1,85,687.50p on the ground that the defendant has borrowed a sum of Rs. 83,000/ - for the purchase of tractor on 1.7.1988 and since there is a default in payment, the plaintiff claimed the defaulted amount along with interest @ 17 -1/2% p.a., in terms of the documents executed by the defendants.

(2.) THE learned trial Court decreed the suit in respect of the loan amount along with agreed rate of interest up to the date of filing of suit, but in respect of the future interest, granted a decree @ 6% p.a. for the reason that the loan has been obtained for the agricultural purposes. Said decree has been affirmed in appeal by the learned first Appellate Court.

(3.) I do not find any merit in the argument raised by the learned counsel for the plaintiff that the plaintiff is entitled to the agreed rate of interest even for the post decree period. In Central Bank of India v. Ravindra : (2002) 1 SCC 367, the Hon'ble Supreme Court has examined the question of levy of interest and held that the grant of future interest falls in the discretion of the Court. It has been held as under: -