Bank Of Maharashtra vs M/S Strip India & Ors.
2011 Latest Caselaw 3526 Del

*              IN THE HIGH COURT OF DELHI AT NEW DELHI

+                          RFA No.138/2002

%                                                        July 25, 2011

BANK OF MAHARASHTRA                                            ...... Appellant
                  Through:             None


                           VERSUS

M/S STRIP INDIA & ORS.                                         ...... Respondents

                           Through:    None

CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA

    1.   Whether the Reporters of local papers may be
         allowed to see the judgment?

    2.   To be referred to the Reporter or not?

    3.   Whether the judgment should be reported in the Digest?


VALMIKI J. MEHTA, J (ORAL)

1.       This case is on the Regular Board in this Court since 3.7.2011. Today it

is 3.25 p.m. No one appears for the appellant. I have therefore perused the

record and am proceeding to dispose of the appeal.


2.       Challenge by means of this appeal is to the impugned judgment dated

12.11.2001 which dismissed the suit of the appellant bank for recovery of

interest on amounts which were illegally advanced by its Branch Manager to

the defendants no.1 to 3/respondents no.1 to 3. The impugned judgment



RFA No.138/2002                                                          Page 1 of 2
 disallows the claim for interest on the ground that there is no agreement to

pay interest.


3.    In my opinion, the impugned judgment deserves to be set aside

inasmuch as once a person takes credit facilities from bank, surely it is for

commercial purpose and therefore it can be said that there is a usage to pay

interest with respect to amounts which are borrowed.        Section 4(1) of the

Interest Act, 1978 permits the court to allow interest wherever there is a

usage which is applicable. If there was any doubt with regard to payment of

interest, then, the same is removed from the fact that demand notice dated

24.9.1994 was served to make payment of the dues. This payment notice

has been exhibited as Ex.PW3/5 and PW3/6 & 7 (colly). The appellant bank is

therefore also entitled to interest by virtue of Section 3 (1)(b) of the Interest

Act, 1978.


4.    Accordingly,   suit   of the   appellant/plaintiff/bank   for   recovery of

Rs.2,20,899/- is decreed along with the pendente lite and future interest of

9% per annum till realization.


5.    Parties are left to bear their cost.    Decree sheet be prepared. Trial

court records be sent back.




JULY 25, 2011                                        VALMIKI J. MEHTA, J.

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