ISHWAR SINGH Vs. UNITED COMMERCIAL BANK

JUDGEMENT

(1.) ISHWAR Singh, Judgment -debtor (hereinafter referred to as 'the Judgment -debtor') obtained a loan of Rs. 42,000/ -from the United Commercial Bank Limited, respondent -decree -holder (hereinafter referred to as 'the decree -holder'). Some of the loan amount was deposited. After the Judgment -debtor defaulted in payment of instalments, the decree -holder filed a suit for recovery of the decretal amount plus the interest which has accrued till the date of filing of the suit alongwith future interest. Suit was decreed for Rs. 64,981.82 with future interest at the rate of 12 -1/2% per annum. Judgment -debtor failed to deposit the money and, thereafter, the decree -holder filed an execution application, Judgment -debtor filed objections in the execution and claimed that grant of interest more than 6% per annum on the principal amount was illegal and, therefore, the decree could not be executed. Another argument raised was that the Judgment -debtor was liable to pay interest on the principal amount alone and not on the interest which had become due at the time of filing of the suit. Both the contentions raised by the Judgment -debtor were rejected. It was held that the Judgment -debtor was liable to pay the agreed rate of interest on the amount which had be come payable on the date of filing of the suit after adding interest on the principal amount.

(2.) COUNSEL for the parties have been heard.

(3.) FOR taking this view, reliance was placed on Makhan Singh v. Union of India and Ors., 1989 1 P.L.R. 703.