1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.349 OF 1996 Nutan Ware Housing Co. Pvt. Ltd. ..Appellants. Vs. Sampada Sahakari Bank Ltd. ..Respondents. Mr.S.S. Kanetkar i/b. Mr.G.S. Godbole for the Appellants. Mr.R.S. Apte for the Respondents. CORAM: B.H. MARLAPALLE AND S.J. VAZIFDAR, JJ. DATED : 18TH JULY, 2009 P.C. :- This is an Appeal against the judgment of the learned Civil Judge, Senior Division, Pune, decreeing the Respondents suit in the sum of Rs.10,48,386/- together with future interest at the rate of 18% per annum on the principal amount of Rs.6,28,649/- from the date of the institution of the suit till realization of the entire amount. 2. The Respondents filed a usual bank suit for the recovery of its dues. Admittedly, the Appellants had requested the Respondent for a loan of Rs.10,00,000/- in January, 1993. The Respondents granted 2 the said loan inter-alia against security. The Appellants executed a demand promissory note dated 6.6.1983 for a sum of Rs.10,00,000/-. 3. The Defendant has admittedly availed of the said loan and enjoyed the same. As the loan had not been repaid, the Respondents called upon it to repay the same. The Appellants in the correspondence including by its letter dated 23.8.1985, accepted its liability. 4. Ultimately, as the loan had not been repaid, the Respondents were constrained to file the said suit. 5. The learned Judge framed the following issues :- ISSUES FINDINGS 1. Whether this Court has In the affirmative jurisdiction to try this suit ? 2. Whether the Defendant proves In Negative that the hypothecation deed was nominally executed by him in the absence of duly printed application form for loans and that it was agreed that relevant documents would be executed lateron ? 3. Does it further prove that the In negative agreed rate of interest was below 15% p.a. ? 3 4. Whether the Plaintiff is In affirmative entitled to claim the further interest @ 18% p.a. ? 5. Whether the suit is barred In negative by limitation ? 6. What decree and order and As per final order costs ? The recast Issues 7. Whether Plaintiff proves Yes, Principal Amount that what is the principal is Rs.6,28,649/- amount ? 8. What is the interest amount ? The interest amount is Rs.4,13,337/- 6. There really is no defence to the Respondents claim. It is not necessary for us to deal with the contentions of the parties before the trial Court as Mr.Kanetkar, the learned counsel appearing on behalf of the Appellants has fairly and responsibly restricted himself to the question of interest. 7. Mr.Kanetkar submitted/requested that this Court reduce the rate of interest from 18% to 10% for the entire period. 8. In view of the reasonable and fair conduct of the Appellants, at least before this Court, we are inclined to reduce the rate of interest though not to 10% and not for the entire period. Upto the date of filing 4 of the suit, the Appellants are entitled to interest at the contractual rate at 18% per annum. The interest after the date of filing of the suit being governed by section 34, we heard the learned counsel regarding the same. 9. The suit was filed on 30.4.1986. It was decreed by the impugned judgment, which was delivered on 30.11.1994. By an interim order dated 2.3.1996 the execution of the decree was stayed subject to the Appellants depositing with Respondents bank, the entire decretal amount within ten weeks. The decretal amount was admittedly deposited by the Appellants with the Respondents bank on 18.11.1996 and has been invested with the Respondents bank. Thus, the entire claim of the Respondents is satisfied and interest, in any event, cannot accrue from the date of the said deposit. 10. Looking to all the facts and circumstances of the case, we are of the view that interest at 18% per annum from the date of the filing of the suit till the deposit of the decretal amount by the Appellants would not be justified. In our view, the ends of justice would be met by reducing the rate of interest for the period from 30.4.1986 i.e. the date of filing of the suit to 18.11.1996, i.e. the date of deposit of the decretal amount, to 14% per annum. 11. In the circumstances, the Appeal is disposed off by 5 confirming the order and judgment of the trial Court save and except that the Appellants will be entitled to a refund of money calculated at 4% on principal sum of Rs.6,28,649/- from 30.4.1986 to 18.11.1996. The same shall be paid by the Respondents to the Appellants within eight weeks from today. In the facts and circumstances of the case, there shall be no order as to costs. (S.J. VAZIFDAR, J.) (B.H. MARLAPALLE, J.)