PUNJAB NATIONAL BANK Vs. SOHAN SINGH

JUDGEMENT

(1.) The challenge in the present revision petition is to the order passed by the learned Executing Court on 21.1.1995, whereby the petitioner was directed to file revised Statement of Account by claiming simple interest @ 5% p.a. from October 1985 till September 30, 1993, in terms of the order passed by the Hon'ble Supreme Court in Civil Appeal No. 4426 of 1985 decided on 31.3.1993.

(2.) The petitioner has filed Civil Suit No. 366 on 5.9.1985 for recovery by sale of mortgage property in which a preliminary decree was passed on 13.9.1991. By such decree, the defendants were granted two month's time to pay the decretal amount after the vacation of the stay granted by the Hon'ble Supreme Court, failing which liberty was given to the plaintiff to seek preparation of the final decree.

(3.) The liability of persons similarly situated as the petitioner was challenged before Hon'ble Supreme Court. The Hon'ble Supreme Court in the aforesaid Civil Appeal has passed an order that only stipulated simple interest should be charged but such simple interest will not be applicable in the cases, where the decrees have already been obtained by the Banks, Financial Institutions, and have become final. In respect of the suits, which were stayed by the orders of the Hon'ble Supreme Court, it was ordered that the simple interest will be charged from 1.10.1985 till 30.9.1993 @ 5% p.a. The said order reads as under :-