STATE BANK OF INDIA Vs. RAVINDER KUMAR

JUDGEMENT

(1.) This appeal has arisen out of a suit filed by the appellant Bank for the recovery of Rs. 1,99,957.48. The trial Court passed a decree of the said amount together with interest upto the date of the decree. No reasons were given for declining the future interest on the said amount till its recovery. The Bank has, therefore, come up in appeal for that relief.

(2.) As held in Ranvijaya Shahi v. Bala Prasad Motani, 1978 AIR(Pat) 91 the Court has to give reasons for not allowing the future interest on the principal amount till the date of its realisation. In the present case, the defendant never put in appearance within the prescribed period to seek permission to contest the suit. So there was no reason to deny the plaintiff future interest till the date of realisation. Even at the time of argument, learned counsel for the respondent could not advance any reasons disentitling the plaintiff to future interest from the date of the decree till the realisation of the amount. The decree of the trial Court is liable to be modified to the extent that the plaintiff would also be entitled to the future interest at the rate of 12% on the principal amount from the date of decree till its realisation. The appeal is, accordingly, allowed with costs and the decree modified to the extent indicated above.