IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN & THE HONOURABLE MR. JUSTICE S.S.SATHEESACHANDRAN WEDNESDAY, THE 16TH JUNE 2010 / 26TH JYAISTHA 1932 AS.NO. 359 OF 1996() -------------------- {OS.298/1994 OF THE ADDL.SUB COURT, PARAVUR} .................... APPELLANT(S)/PLAINTIFF: ----------------------------- FEDERAL BANK LTD., ALUVA, REPRESENTED BY THE BRANCH MANAGER, THRIPUNITHURA, ERNAKULAM DIST. BY ADV. SRI.N.P.SAMUEL RESPONDENT(S)/DEFENDANTS: ----------------------------------- 1. T.S.MURALI, S/O.SURYANARAYANA IYYER, CHANI MADOM, DOING BUSINESS UNDER THE NAME AND STYLE “SRI.VINAYAAM FILMS, CHANI MADAM, THRIPUNITHURA. 2. MRS.S.MEENAKSHI AMMAL, W/O.S.SURYANARAYANA IYYER, CHANI MADOM, THRIPUNITHURA, ERNAKULAM. 3. T.S.RAMASWAMI, S/O.LATE S.SURYANARAYANA IYYER, CHANI MADOM, THRIPUNITHURA, ERNAKULAM. R1 & R2 BY ADV. SRI.P.JACOB VARGHESE R3 BY ADV. SRI.K.L.NARASIMHAN THIS APPEAL SUITS HAVING BEEN FINALLY HEARD ON 16/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: THOTTATHIL B.RADHAKRISHNAN & S.S.SATHEESACHANDRAN, JJ. --------------------------------------- A.S.No.359 of 1996 --------------------------------------- Dated this the 16th day of June, 2010 JUDGMENT THOTTATHIL B.RADHAKRISHNAN, J. The plaintiff is the appellant. It is a scheduled bank. It sued the defendants for realisation of money advanced. The principal amount was Rs.1 lakh. The agreed rate of interest was 18.5% with 2.25% penalty, in default. The plaintiff sued for an amount of Rs.1,99,608.60 with 24% interest due thereon. 2. At trial, the defendants withdrew their contentions. The suit was accordingly decreed by the court below directing the defendants to pay Rs.1,99,608.60 with future interest at the rate of 24% per annum on the principal amount of Rs.1 lakh from the date of suit till the date of realisation and also by A.S.No.359 of 1996 :: 2 :: sale of property, in case the plaintiff refuses to make payment as ordered. 3. This appeal by the plaintiff is on the rate of interest awarded by the court below. 4. Perusing the plaint, we find that the rate of interest is at 18.5% per annum with a penalty of 2.25% in default. The defendant, having withdrawn the contentions and the court being compelled to grant interest, on the agreement of parties, it was a case where future interest ought to have been pegged at 18.5%, however, on the entire amount of Rs.1,99,608.60, in view of Section 21A of the Banking Regulation Act. Under such circumstances, this appeal is allowed in part, with proportionate costs, modifying the decree of the court below, to the A.S.No.359 of 1996 :: 3 :: effect that the amount, that the plaintiff can realise from the defendants and their assets in terms of the impugned decree, would be Rs.1,99,608.60 with future interest at 18.5% on the said amount from the date of suit till realisation. Sd/- (THOTTATHIL B.RADHAKRISHNAN) JUDGE Sd/- (S.S.SATHEESACHANDRAN) JUDGE sk/ //true copy// P.S. to Judge.