Indian Bank vs Gurcharan Singh And Ors.
2018 Latest Caselaw 5529 Del

*            IN THE HIGH COURT OF DELHI AT NEW DELHI

+                         RFA No.222/2006

%                                                 12th September, 2018

INDIAN BANK                                               ..... Appellant

                          Through:       None.

                          versus

GURCHARAN SINGH AND ORS.                                ..... Respondents

                          Through:       None.

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

To be referred to the Reporter or not?


VALMIKI J. MEHTA, J (ORAL)

1. This Regular First Appeal under Section 96 CPC is filed by the

plaintiff-bank impugning the judgment of the Trial Court dated

21.11.2005 by which the trial court though decreed the suit filed by

the appellant/plaintiff/bank, but the trial court decreed the suit not for

the amount as prayed in the plaint of Rs.9,83,702.35/- along with

pendente lite and future interest at 20.75% per annum and instead

decreed the suit only for a sum of Rs.3,00,000/- with interest at 12.5%

per annum from 13.1.1989 till realization. It is therefore seen that the

trial court has essentially denied the rate of interest claimed by the

bank from 13.1.1989 when the loan was given till the filing of the suit,

resultantly that the amount claimed in the suit though becoming the

principal amount on account of interest being added on account of

non-payment and which resulted to the amount claimed in the suit of

Rs.9,83,702.35/-.

2. In my opinion the impugned judgment of the trial court is

clearly erroneous because once loan amount is granted of

Rs.3,00,000/- from 13.1.1989, and which loan amount carries interest

compounded quarterly as per RBI Guidelines and on account of non-

payment of interest the same merges into the principal, suit amount

which is total of the loan granted plus interest has to be awarded. This

is held by the Constitution Bench judgment of the Supreme Court in

the case of Central Bank of India Vs. Ravindra and Ors., (2002) 1

SCC 367. It is also noted that the appellant/plaintiff proved on record

the acknowledgements of debts dated 17.10.1991/Ex.P-12,

4.10.1994/Ex.P-13 and these acknowledgments of debts will

acknowledge the liability of the amount payable as per the dates given

in the acknowledgment letters. This is another reason why the trial

court has wrongly decreed the suit only for a sum of Rs.3,00,000/-

being the original loan amount along with interest at 12.5% per

annum.

3. In view of the aforesaid discussion, this appeal is allowed. The

impugned judgment of the Trial Court dated 21.11.2005 is modified

by passing a money decree in favour of the appellant/plaintiff bank for

a sum of Rs.9,83,702/- along with pendente lite and future interest till

realization at 12.5% per annum. Appellant will also be entitled to

costs of this appeal. Decree sheet be prepared. Appeal is accordingly

allowed and disposed of.

VALMIKI J. MEHTA, J SEPTEMBER 12, 2018 AK