STATE BANK OF PATIALA Vs. GANESH METAL INDUSTRIES

JUDGEMENT

(1.) This is an appeal by the State Bank of Patiala, arising from a suit filed by the Bank against the respondents-defendants herein, seeking recovery of Rs.4,24,518/-, alongwith interest @ 18% per annum, the total amounting to Rs.7,11,55.27 Paise.

(2.) The facts, taken from the plaint filed by the Bank, are that respondent-defendant No.1 is a partnership firm, with respondents-defendants No.2 and 3 being the partners of the said firm.

(3.) Thereafter, upon a judgment of the hon'ble Supreme Court having been delivered in State Bank of Patiala v. Harbans Singh, 1994 3 SCC 495 , the defendants represented to the Bank to recast the loan by charging simple interest @ 15% per annum, on both the loans, instead of compound interest.