IN THE HIGH COURT OF KERALA AT ERNAKULAM
RFA.No. 572 of 2005()
1. S. SHIHAS,
... Petitioner
Vs
1. THE CATHOLIC SYRIAN BANK LTD.,
... Respondent
For Petitioner :SRI.M.C.SEN (SR.)
For Respondent :SRI.C.A.JOY
The Hon'ble MR. Justice P.R.RAMAN
The Hon'ble MR. Justice T.R.RAMACHANDRAN NAIR
Dated :07/07/2008
O R D E R
P.R.Raman &
T.R. Ramachandran Nair, JJ.
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R.F.A. No.572 of 2005
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Dated this the 7th day of July, 2008.
JUDGMENT
Ramachandran Nair, J.
The defendant is the appellant. The decree is for realisation of
money.
2. The plaintiff bank granted credit facilities totalling Rs.4,35,000/-
to the appellant on the strength of equitable mortgage of 1 acre 8.50 cents of
land with buildings and structures. When the loan amount was defaulted,
the suit was filed. As per the decree, the court below has allowed the
plaintiff to realise Rs.5,27,762/- together with interest at the rate of 12% per
annum from 1.6.1997 till realisation and also the proportionate costs.
3. The only ground raised in the appeal is regarding the interest
claimed in the suit. Learned counsel for the appellant contended that the
court below has not correctly appreciated the facts in fixing the interest at
12% per annum which, going by the principles available under Section 34
of the Code of Civil Procedure, is exorbitant. Learned counsel contended
that the interest ought to have been allowed only at the rate of 6% per
annum at least from the date of decree.
RFA 572/2005 -2-
4. Learned Standing Counsel for the Bank submitted that the contract
rate of interest is 20.50% and the court below has considered the entire
aspects in detail and being a commercial transaction, it cannot be said that
the interest granted is on a higher side.
5. Going by the plaint, the rate of interest claimed is 20.5%. The
court below has fixed the same at 12% in spite of the claim by the plaintiff,
finding that considering the present rate of interest for money lending and
deposit, the interest claimed from the date of suit is excessive. We find no
infirmity in the said method adopted by the court below. In the nature of the
transaction, the court below was right in fixing pendente lite interest and the
future interest at a uniform rate of 12%. Hence, the same is in accordance
with the mandate of Section 34 of the C.P.C. The discretion has been
exercised correctly and there are no grounds to interfere with the same in
this appeal. However, taking note of the fact that the appeal is now pending
before this court since 2005, we direct that the rate of interest will be 6%
per annum from the date of filing of this appeal till realisation. We modify
RFA 572/2005 -3-
the decree accordingly. In all other respects the judgment and decree passed
by the court below is confirmed.
The appeal is disposed of in the above terms. No costs.
( P.R.Raman, Judge.)
(T.R. Ramachandran Nair, Judge.)
kav/