STATE BANK OF INDIA Vs. ROHIT ANGOORA TEXTILES

JUDGEMENT

(1.) THE short question which arises for consideration in this case is whether the trial Court has granted interest at a rate less than the rate of interest agreed between the parties.

(2.) THE facts which are not in dispute are that defendant No.1 which is a proprietor firm through its proprietor defendant No.2 had obtained a loan from the plaintiff-bank. It had agreed to re- pay the loan amount along with interest @ 17.75% per annum with quarterly rests. The learned Single Judge has held that since the defendant had accepted his liability and has undertaken to liquidate the amount, he deserves a lenient view. The learned Single Judge has awarded simple interest @ 17.75% per annum. The learned Single Judge has further directed that the defendant shall be liable to pay simple interest from the date the loan was advanced to him till final payment is made. It would be pertinent to mention that the suit was decreed only against defendants No. 1 and 2 and no decree was passed against defendant No.3. However, the plaintiff- bank has not challenged the decree on any other ground except on the ground of the rate of interest.

(3.) IN Corporation Bank's case (supra), the apex Court held as follows:-