PINKI GENERAL STORE Vs. STATE BANK OF PATIALA

JUDGEMENT

(1.) THE petitioner is aggrieved against the order dated 17.05.1999 by which objection filed by the judgment debtors -petitioners in execution of the decree for recovery of Rs. 47,161/ - filed by the decree -holder has been dismissed with an observation that the decree -holder can claim interest @ 14.5% per annum with quarterly rests.

(2.) IN short, the decree holder -bank filed the suit for recovery Rs. 22,281.87/ - in which a consent decree dated 15.10.1988 was passed and the petitioners were allowed to make payment of the decretal amount in monthly installments of Rs. 600/ - till realization of the entire decretal amount. The decree holder -bank was given liberty to recover the balance in lump sum if there was any default in payment of 2 successive installments and was also held entitled to future interest from the date of filing the suit i.e. 16.07.1986 on the principal amount at the agreed interest rate of 14.5% per annum.

(3.) THE petitioners initially filed the objection on the ground that the rate of interest of 14.5% per annum was excessive and should have been 6% per annum. However, the said prayer was rejected on 26.09.1989 in view of Section 21 -A of the Banking Regulation Act, 1949.