DAL SINGH Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Judgment-debtor-petitioner (hereinafter referred to as 'the judgment-debtor') along with four other judgment-debtors took a loan of Rs. 64,000/- from the respondent-Punjab National Bank, Sunam, decree holder (hereinafter referred to as 'the decree-holder') on 13.4.1981 for the purchase of a tractor. The loan was to be repaid in seven years in 14 half yearly instalments starting from December, 1981. Judgment-debtor paid certain amount by way of instalments but thereafter defaulted in the payment of the instalments.

(2.) Decree-holder-Bank filed a suit on 17.7.1986 for the recovery of Rs. 98,107.00, which was decreed by the Sub Judge, 1st Class, Sunam on 8.8.1988. Judgment-debtor was directed to make the payment of the amount due along with future interest at the rate of 14 1/2% per annum as had been agreed between the parties.

(3.) Decree holder-Bank filed an execution application in which objections were filed by the judgment-debtor. One of the objections taken was that the decree holder-Bank has been granted future interest at the rate of 14 1/2% per annum till realisation which was excessive and should not have been more than 6%. This objection was rejected by the executing Court by the impugned order on the ground that the decree had been passed in a mortgage suit and, therefore, the provisions of Section 34, Code of Civil Procedure regarding future interest would not be applicable.