JAISONS INDUSTRIES Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) This petition is directed against the order of the executing Court dated November 28, 1987 whereby the objection petition filed by the judgment-debtor was dismissed.

(2.) The decree-holder Punjab National Bank is seeking execution of the decree passed in its favour on 5th October, 1984. Therein the judgment debtors filed objections to the effect that interest was already contained h the amount claimed by the bank and, therefore, the interest on the said amount of interest which had been included in the principal amount borrowed, cannot be allowed. It was further alleged that the decree passed was without jurisdiction in view of the above and also the insurance and litigation charges etc. were not subject matter of the decree. According to the judgment-debtors the decree-holder was not entitled to the interest on the composite amount.

(3.) This objection petition was contested by the decree-holder. It was pleaded that the interest was agreed to be paid in quarterly rests. The quarterly interest if not paid shall become principal for the next quarter as per the terms of the agreement. Therefore, the sum of Rs. 70,488.05 paise was the principal amount. The allegations were denied.