R.S.A. No. 3828 of 2009 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH -.- R.S.A. No. 3828 of 2009 (O&M) Date of decision:-12.11.2010 Sunil Kumar and ors. ... Appellants. Versus General Manager, State Bank of Patiala & Ors. ... Respondent CORAM:- HON'BLE MR. JUSTICE GURDEV SINGH Present:- Mr. Ramender Chauhan, Advocate, for the appellants. Mr. H.N.Mehtani, Advocate, for the respondents. Gurdev Singh, J (oral) Heard. Narayan, who is being represented by the appellants as legal representatives, filed suit against the respondents/defendants for declaration to the effect that he is entitled to get refund of ` 103711.50, which was the amount recovered in excess, along with compound interest at the rate of 24% per annum, from the due date till payment with consequential relief of mandatory injunction directing the defendants to refund the excess amount so deducted along with the interest at the said rate. The suit was dismissed by the Additional Civil Judge (Sr. Division), Bhiwani, vide judgment and decree dated 14.1.2006. The plaintiff preferred an appeal against that judgment and decree which was dismissed by Additional District Judge (Ad hoc), Bhiwani, vide judgment and decree dated 27.2.2008. This second R.S.A. No. 3828 of 2009 (O&M) -2- appeal has been filed against those judgment and decrees. Notice of motion was issued, vide order dated 23.2.2010, for exploring the possibility of reduction of interest component, in view of that fact in case plaintiff would have utilised the amount in dispute the interest, as per the agreement between the parties, was to be charged @5% per annum and there was no stipulation to charge the interest @18% per annum. I have heard learned counsel for the parties. It has been submitted by learned counsel for the appellant/plaintiff that for the mis-utilisation of the loan so obtained by the plaintiff a penalty of stoppage of two increments was imposed upon him and in that eventuality the recovery of interest @18% is on the higher side. Keeping in view that fact and the bank rate of interest prevailing at the relevant time, the interest is reduced from 18% per annum to 12% per annum. The judgment and decree of the first Appellate Court is modified to that effect. The appeal is disposed of accordingly. November 12, 2010 (Gurdev Singh) tripti Judge