PUNJAB NATIONAL BANK Vs. SHEOVIJOY UDYOG

JUDGEMENT

(1.) This first appeal has been filed by the Punjab National Bank, Chapra, District Saran against that part of the judgment and decree whereby the learned court below has granted interest pendente lite and future @ 12% per annum only while decreeing the plaintiff-appellant's money suit.

(2.) The plaintiff-appellant filed the aforesaid suit for realization of Rs. 1,54,034/- from the defendant-respondent No. 1, partnership firm and its partners on the ground that the defendants applied for loan which was sanctioned for Rs. 1,00,000/- on 28.2.1981 with interest @ 19.40% with quarterly rests. After trial the lower court below decreed the plaintiff-appellant's suit and awarded interest @ 12% pendente lite and future.

(3.) The learned Counsel for the appellant submitted that the partnership firm is a Small Scale Industries and the loan was for the commercial purpose and, therefore, the lower court below should have granted contractual rate of interest i.e. 19.40% per annum. The learned Counsel relied upon a decision of the Hon'ble Supreme Court State Bank of India v. Yasangi Venkateswara Rao, 1999 2 SCC 375 and submitted that the court cannot interfere the rate of interest.