BANK OF INDIA Vs. RAKESH JAIN

JUDGEMENT

(1.) This appeal is directed against the judgment and decree dated 27-4-1988 passed by the learned Second Additional District Judge, Jammu whereby he decreed the suit of the appellant herein against the respondents in the amount of Rs. 1,19,234.68 paise. No future interest was granted. The decretal amount was made payable by instalment to the tune of each instalment of Rs. 2000/- per month coupled with the sale proceeds of the Mini Bus No. JKQ-1873, Engine No. 07-102132, Chassis No. 07-102132 which stood financed by the appellant. In case of defaults of making two instalments, the whole decretal amount was made payable in lump sum.

(2.) The judgment and decree has been challenged on the simple question that the trial Court has committed a legal error in not awarding any future interest and that the instalment is very meagre and the decretal amount can fetch more amount in the market if given on loan.

(3.) Heard the arguments, Counsel for the appellant has contended that trial Court has committed a legal error by ignoring payment of contractual interest which was at the rate of 11.85%. The Court undoubtedly had the power of reducing the interest but reasons had to be assigned, but in the case altogether no interest has been paid and no reason has been assigned for not making the payment of interest. In support of his arguments, learned counsel has cited AIR 1997 JandK 70, AIR 1997 J and K 71 (sic) and AIR 1995 J and K 99.