IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMAN & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR MONDAY, THE 7TH JULY 2008 / 16TH ASHADHA 1930 RFA.No. 572 of 2005() --------------------- OS.248/1997 of ADDL.SUB COURT,KOLLAM .................... : APPELLANT/DEFENDANT: ------------------------------------- S. SHIHAS, PROPRIETOR, SUN DALE BRICKS, PUNTHALATHAZHAM, PEROOR, KOLLAM-5. BY ADV. SRI.M.C.SEN (SR.) SRI.M.P.SREEKRISHNAN SMT.SHAHNA KARTHIKEYAN RESPONDENT: PLAINTIFF: ----------------------- THE CATHOLIC SYRIAN BANK LTD., KILIKOLLUR BRANCH, REP. BY ITS BRANCH MANAGER, KOLLAM. BY ADV. SRI.C.A.JOY THIS REGULAR FIRST APPEAL HAVING BEEN FINALLY HEARD ON 07/07/2008, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: ORDER ON IA NO.3912/07 DISMISSED. 7/7/2008 SD/- P.R. RAMAN, JUDGE. SD/- T.R. RAMACHANDRAN NAIR, JUDGE. //TRUE COPY // P.S. TO JUDGE P.R.Raman & T.R. Ramachandran Nair, JJ. - - - - - - - - - - - - - - - - - - - - - - - - R.F.A. No.572 of 2005 - - - - -- - - - - - - - - - - - - - - - - - - - - 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/