IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Regular Second Appeal No. 487 of 2009 Date of Decision : September 01, 2009 M/s Shakti Agricultural Implements, Village Sherpur, Tehsil Chhachhrauli, District Yamunanagar and another ....Appellants Versus State Bank of Patiala and another .....Respondents CORAM : HON'BLE MR. JUSTICE T.P.S. MANN Present : Mr. V.B.Aggarwal, Advocate for the appellants. Mr. R.S.Bhatia, Advocate for respondent No.1. T.P.S. MANN, J. Suit for recovery filed by the respondent-bank was decreed with costs by the learned Civil Judge (Senior Division), Jagadhri, on 19.2.2007 and a decree for recovery of Rs.7,29,563/- along with costs and interest @ 15.5% per annum from the date of filing of the suit till realization of the decretal amount, was passed in favour of the bank and against the defendants. The aforementioned judgment and decree was challenged by the defendants-appellants by filing an appeal, which was, however, dismissed by the learned Additional District Judge, Yamunanagar at Jagadhri, on 12.8.2008, leaving the parties to bear their own costs. Aggrieved of the same, the defendants are now before this Court in a R.S.A. No. 487 of 2009 -2- second appeal filed under Section 100 of the Code of Civil Procedure. According to the respondent-bank, the appellants had raised a total loan facility to the tune of Rs.4,50,000/-, which consisted of Rs.3,00,000/- as cash credit limit and Rs.1,50,000/- as term loan. The bank was to charge interest on the said amount @ 15.5% per annum with quarterly rests. The defendants failed to maintain the financial discipline of the bank as per the agreement. Despite several requests made by the bank, the defendants did not regularize the loan account. Accordingly, while filing the suit, the respondent-bank prayed for a decree of Rs.7,29,563/- alongwith pendente lite and future interest @ 19.5% per annum with quarterly rests. In their written statement, all the defendants opposed the claim made by the plaintiff-bank. They denied the receipt of loan. Even the rate of interest was disputed. Accordingly, they prayed for dismissal of the suit. After hearing learned counsel for the parties and going through the evidence brought on the record, the learned trial Court held that the defendants had duly executed the documents regarding cash credit limit and term loan. The plaintiff-bank was held entitled to recover a sum of Rs.7,29,563/- with costs and interest @ 15.5% per annum. When the present appeal came up for preliminary hearing, notice of motion was issued qua rate of interest only, i.e., pendente lite and future. Pursuant thereto, the respondent-bank, which is the only contesting respondent, put in appearance through its counsel R.S.A. No. 487 of 2009 -3- Learned counsel for the appellants submits that the respondent- bank had wrongly claimed interest on the amount of Rs.7,29,563/- @ 19.5% per annum with quarterly rests. Even as per the understanding between the respondent-bank and the appellants, interest @ 15.5% per annum could be claimed. Infact, the appellants are at present facing financial difficulties and in case this Court grants them indulgence by awarding the interest on the decretal amount @ 12% per annum instead of 15.5% per annum, they will be able to repay the entire outstanding amount within a period of two months from today. Learned counsel for the respondent-bank has opposed the prayer made on behalf of the appellants by submitting that even as per the terms and conditions, which were agreed to by the appellants at the time of sanctioning the cash credit limit and term loan, the appellants were required to return the said amount alongwith interest @ 15.5% per annum. In the event of any default on the part of the appellants, they were required to pay interest @ 19.5% per annum. It was under these circumstances that while filing the suit, the respondent-bank had sought interest @ 19.5% per annum. However, the learned Courts below awarded interest only @ 15.5% per annum. Therefore, no case is made out for granting any further relief to the appellants in the matter of rate of interest on the outstanding amount. Though no case is made out for granting any indulgence to the appellants from paying the decretal amount alongwith interest @ 15.5% per R.S.A. No. 487 of 2009 -4- annum, yet keeping in view the peculiar facts of the present case that the money belonging to the respondent-bank is lying blocked which the bank may take years to recover by asking for execution of the decree, and, that the appellants have agreed to repay the entire outstanding amount within a period of two months from today in case they are granted some relief in the matter of rate of interest, a case is made out for altering the rate of interest on the decretal amount from 15.5% per annum to 12% per annum. Resultantly, the appeal is partly allowed by modifying the impugned decree to the extent that the defendants are required to pay interest @ 12% per annum on the decretal amount. However, this is subject to the appellants paying the decretal amount alongwith interest so calculated within a period of two months from today, failing which the present appeal shall stand dismissed. ( T.P.S. MANN ) September 01, 2009 JUDGE ajay-1