PUNJAB NATIONAL BANK Vs. ARJUN

JUDGEMENT

(1.) This appeal is directed against the order of the learned District Forum, Sikar dated 9.2.1999 whereby the complaint filed by the respondent has been accepted and the appellant has been directed to calculate the interest on the loan amount on yearly rest basis.

(2.) The undisputed facts of the case are that the respondent along with one other person Shri Birdu Ram had taken a loan of Rs.1,47,000/- from the appellant Bank on 25.10.1991 to purchase a Tractor RJ 23-R-0574. It has been the grievance of the respondent that although he had paid an amount of Rs.48,051/- against the loan on different dates yet the appellant Bank calculated the interest on the loan amount on half yearly rest basis which is not only excessive but against the terms and conditions agreed between the parties. When a demand was made by the appellant Bank to realise the balance amount of Rs.3,36,972/- vide notice dated 31.5.1998 from him, he approached the learned District Forum to quash the aforesaid demand issued by the appellant Bank and seeking direction that instead of rate of interest as being calculated by the appellant Bank; interest be realised from him on simple interest basis on yearly rest basis and requesting that the appellant be restrained from forfeiting the Tractor in question. The learned District Forum relying upon a judgment of the Hon'ble Supreme Court in 1994 (2) Bank Cases 613 held that the appellant Bank can realise the interest only on yearly rest basis and not on half yearly rest basis. It directed the appellant Bank to calculate the interest accordingly.

(3.) Feeling aggrieved the appellant Bank has filed this appeal to quash the impugned order.