IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE PIUS C.KURIAKOSE MONDAY, THE 9TH JUNE 2008 / 19TH JYAISHTA 1930 AS.No. 609 of 1997() -------------------- OS.108/1996 of SUB COURT, OTTAPPALAM .................... APPELLANT (DEFENDANTS): ----------- 1. P. HAMZA, AGED 52 YEARS, S/O KUNHAYAMU HAJI, PALATHINGAL HOUSE, EDATHANATTUKARA AMSOM OTTAPALAM (P0), MANNARKKAD TALUK, PALAKKAD DISTRICT. 2. MAARIYAKUTTY UMMA W/O P.HAMZA, AGED 45, PALATHINKAL HOUSE, EDATHANATTUKARA AMSOM, UPPUKULAM POST, MANNARKKAD TALUK, PALAKKAD DIST. BY ADV. SRI.A.P.CHANDRASEKHARAN (SR.) SMT.PRABHA R.MENON RESPONDENT(PLAINTIFF): ------------- THE FEDERAL BANK LTD., ALANELLUR BRANCH BY BRANCH MANAGER. BY ADV. SRI.MOHAN JACOB GEORGE SMT.P.V.PARVATHI SMT.REENA THOMAS SRI.K.N.PRAMOD KUMAR MENON SRI.DILEEP KUMAR P.T. THIS APPEAL SUITS HAVING BEEN FINALLY HEARD ON 09/06/2008, ALONG WITH AS. NO. 665/97 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PIUS C. KURIAKOSE, J. ----------------------------------------------- A.S. Nos. 609 & 665 of 1997 ----------------------------------------------- Dated this the 9th day of June, 2008 J U D G M E N T Both these appeals are directed against the judgments and decrees passed in favour of the Federal Bank, the respondent plaintiff. The trial court repelling the various contentions raised by the appellants decreed the suit as prayed for, however, the rate of pendente lite and future interest was determined at 12.5% per annum. Even though Sri.Jayesh Mohankumar, learned counsel for the appellants addressed me very strenuously on the various grounds raised in the appeal memos, having gone through the judgment and having made a survey of the evidence which was adduced by the parties before the trial court I do not find any warrant for interfering with the findings entered by the trial court on the various issues except to the extent it relates to the award of pendente lite and future interest. Though the bank had pleaded that the liabilities had arisen out of a commercial transaction no memorandum of cross objections have been preferred by the bank insisting that pendente lite and future interest also should have been awarded at the contract rates. I am of the view in view of the obvious position that the liability has not arisen out of a commercial transaction the court below was not justified in AS. N0s. 609 & 665 of 1997 -2- awarding pendente lite and future interest at the rate of 12.5% per annum. Having regard to the several judicial precedents which govern identical situations I am of the view that the reasonable rate of interest is to be allowed pendente lite and future is 9% per annum. To that extent the judgments and decrees under appeals will stand modified. Accordingly the appeals are disposed of reducing the rate of pendente lite (interest from the date of the suit till date of decree) and future interest (post decree) to 9% per annum. In all other respects the judgments and decrees under appeal will stand confirmed. In these appeals the parties will suffer their respective costs. As requested by Mr.Jayesh Mohankumar, counsel for the appellants there will be a direction to the respondent bank to defer initiation of execution proceedings by a period of two months from today since according to the learned counsel the appellants are trying to sort out the issue with the bank. (PIUS C.KURIAKOSE, JUDGE) ksv/ AS. N0s. 609 & 665 of 1997 -3- PIUS C.KURIAKOSE, J. AS. NOS. 609 & 665 OF 1997 JUDGMENT 9th June, 2008