IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD PRESENT THE HON’BLE SRI JUSTICE B.PRAKASH RAO AND THE HON’BLE SRI JUSTICE P.DURGA PRASAD C.C.C.A.No.135 OF 2006 Date:07-03-2011 Between:- Sardar Nanak Singh .. Appellant/1st defendant And Life Insurance Corporation of India, Hyderabad, rep.by its Senior Divisional Manager and another. .. Respondents JUDGMENT:- (Per the Hon’ble Sri Justice P.Durga Prasad) This appeal is against the judgment and decree passed in O.S.No.159 of 2002 by XII Additional Senior Civil Judge, City Civil Court, Secunderabad on 17-04-2006. 2. The appellant is defendant No.1 and respondent No.1 herein is the plaintiff in the said suit filed for recovery of Rs.6,97,240- 79ps basing on the mortgage by deposit of title deeds for obtaining housing loan. The appellant herein has resisted the suit on the ground of making part payments and also the rate of interest. 3. The lower Court has framed the following issues for consideration: 1. Whether the interest claimed is excessive? 2. Whether the plaintiff is entitled to the suit claim? 3. To what relief? 4. Now the point that arise for consideration is whether the interest awarded by the lower Court is correct? 5. The lower Court, while decreeing the suit for Rs.6,46,919/- with proportionate costs, granted subsequent interest at 15% p.a. from the date of suit till the date of redemption of the property on Rs.6,46,919/- and granted time for redemption for a period of three (3) months and after the time for redemption, the defendant shall pay interest at 6% p.a. till the date of realization of the amount. The lower Court has decided both the issues together and held that the rate of interest was granted basing on the agreement entered into between the parties. There is no dispute that the rate of interest, as per the contract, is 15% p.a. and the same is evident from Ex.A-2. Now the appellant’s counsel has pleaded for reduction of the said rate of interest. Since the suit transaction is a loan transaction basing on mortgage of deposit of title deeds, rate of interest is agreed between the parties. Since the lower Court has granted the contracted rate of interest while decreeing the suit, the same is not liable to be reduced and cannot be said to be excessive and the lower Court has rightly come to the conclusion that the plaintiff-Corporation is entitled for the agreed rate of interest. Hence, the said finding of the lower Court does not warrant any interference by this Court. 6. In the result, the City Civil Court Appeal is dismissed. In the circumstances, there shall be no order as to costs. ___________________ B.PRAKASH RAO, J _____________________ P.DURGA PRASAD, J 7th March, 2011 AMD THE HON’BLE SRI JUSTICE B.PRAKASH RAO AND THE HON’BLE SRI JUSTICE P.DURGA PRASAD C.C.C.A.No.135 OF 2006 Date:07-03-2011 AMD