IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE M.L.JOSEPH FRANCIS THURSDAY, THE 12TH NOVEMBER 2009 / 21ST KARTHIKA 1931 FAO.No. 316 of 2008() ------------------------------ AGAINST THE ORDER DATED 19/11/2008 IN IA 7032/08 IN OS.863/2008 of I ADDL.SUB COURT,ERNAKULAM .................... APPELLANTS/ PETITIONERS/ PLAINTIFFS:- ------------------------------------------------------------- 1. NAJUMA SALI, W/O.K.M.SALI, AGED 52, 42/2252 C, ST.BENEDICTROAD, ERNAKULAM, KOCHI-18, NOW RESIDING AT HOUSE NO.2256G, PROVIDENCE ROAD, ERNAKULAM-18, ERNAKULAM VILLAGE, KANAYANNUR TALUK. 2. K.M.SALI, S/O.LATE K.A.MOHAMMED, AGED 52, 42/2252C, ST.BENEDICT ROAD, ERNAKULAM, KOCHI-18, NOW RESIDING AT HOUSE NO.2256G, PROVIDENCE ROAD, ERNAKULAM-18,ERNAKULAM VILLAGE, KANAYANNUR TALUK. BY ADV. SRI.K.C.CHARLES RESPONDENT(S): RESPONDENT/ DEFENDANT:- ------------------------------------------------------------------- VIJAYA BANK LIMITED, REPRESENTED BY ITS BRANCH MANAGER, VYTTILA BRANCH, KOCHI-19, POONITHURA VILLAGE, KANAYANNUR TALUK. ADV. SMT.SALLY THOMAS CHACKO FOR R1 SRI.P.T.THOMAS PERAKATH FOR R1 THIS FIRST APPEAL FROM ORDERS HAVING BEEN FINALLY HEARD ON 12/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M.JOSEPH & M.L.JOSEPH FRANCIS, JJ. ------------------------------------------------------ F.A.O.No.316 of 2008 ---------------------------------------------- Dated, this the 12th day of November, 2009 J U D G M E N T K.M.Joseph, J. This appeal is filed against an order passed in I.A.No.7032/2008 in O.S.No.863/2008 on the file of the Sub Judge, Ernakulam. The application was moved under Order XXXIX Rule 1 of Code of Civil Procedure seeking temporary injunction restraining the respondent, its men and agents from charging interest above 9% on the loan account under V-rent scheme till the disposal of the suit. The learned Sub Judge proceeded to consider the matter and reject the application. Aggrieved by the same the petitioners/appellants are before us. 2. We heard the learned counsel for the appellants and also the learned counsel for the respondent-Bank. The case of the appellants in short is that appellants have availed loan under which the agreed rate of interest was to be 14.25% and it was to be reduced to 9% per annum upon the tenants F.A.O.No.316 of 2008 -2- in the building to be constructed with the loan re-paying the the same from the rent. According to the appellants tenants started paying rent on 15.3.2006. According to them still the respondent-Bank is charging interest at 14.25%. Appellants apprehend that proceedings would be taken under the SARFAESI Act by treating the account as NPA on the basis of higher rate of interest being charged. Learned counsel for the respondent on the other hand would contend that the appellants have not fulfilled the various conditions for being entitled to the benefits of concessional rate claimed by the appellants. Learned counsel for the respondent-Bank also points out that the suit is listed for trial and the suit itself can be disposed of. She further got instructions and submits that as of now there is no proposal even to treat the account as NPA. 3. The main prayer in the suit itself is for a declaration that the appellants cannot be charged with interest above 9% in respect of 2 accounts. We are of the view that since the suit itself is listed for trial we need not interfere with the order refusing grant of injunction. Certainly it is open to F.A.O.No.316 of 2008 -3- the appellants to establish their case in the suit itself and all that is required is a direction to take up the suit and dispose of the same within a time limit. Accordingly, while rejecting the appeal we direct O.S.863/2008 be taken up and disposed of on or before 31.01.2010 untrammelled by any of the observations contained in the impugned order or this order. All pending interlocutory applications are closed. (K.M.JOSEPH) JUDGE. (M.L.JOSEPH FRANCIS) JUDGE. MS