This appeal has been preferred against the Judgment and decree, dated 30.09.1993 in O.S.No.426 of 1992 passed by the Additional Subordinate Court, Dindigul.
2. The defendants in the suit are the appellants herein. The Suit was filed by the respondent, the Indian Overseas Bank, Pattiveernapatti Branch, Nilakottai Taluk, which is a Nationalised Bank, claiming a sum of Rs.41,335.65/- together with interest and cost.
3. The Suit claimed was based on grant of loan of Rs.18,000/- (Rupees Eighteen Thousand only) for development of coffee crop. As a security, for the loan, the defendants, on 06.07.1977, excuted a prommisory note for Rs.18,000/- (Rupess Eighteen Thousand only) and the schedule mentioned properties had been mortgaged. Since the amount was not repaid, the Suit was filed under Order 34 Civil Procedure Code.
4. In the written statement, the defendants claimed that the loan was only Rs.9,000/-. They also stated that the loan was obtained only for Coffee cultivation and that the defendants were agriculturists. They also claimed that they should be given the benefit of reduced rate of interest.
5. During the trial, on the side of the plaintiff, one Rangarajan was examined as P.W.1 and Ex.A.1 to Ex.A.7 were marked. On the side of the defendants, first defendant, Thangathurai was examined as D.W.1. and Ex.B.1 to Ex.B.6 were marked. The plaintiff's documents included the documents relating to the loan and the defendants' documents included the Debt Relief Schemes for the year 1990 for agriculturists.
6. Considering the oral and documentary evidence, the learned Additional Subordinate Judge, Dindigul had decreed the suit with interest at the rate of 15.5% per annum together with costs. Challenging the said decree, the defendants have filed the present appeal.
7. In the appeal, the only point urged by the learned counsel for the appellants is that the rate of interest at 15.5% granted by the learned Trial Judge, has to be interferred with. The learned counsel stated that the Suit had been filed under Order 34 of Civil Procedure Code. The learned counsel further pointed out that the appellants are agriculturists and consequently, they are entitled to the benefit of Debt Relief Scheme. The learned counsel has not disputed the Principal amount of Rs.41,335.65/-. However, he has challenged granting of interest at the rate of 15.5% per annum, which, according to him was exhorbitant.
8. Under order 34 Rule 11 of Civil Procedure Code, which deals with payment of interest, the Court has been granted discretion with respect to determining the rate of interest, which can be awarded in this case. It seen that the appeal is of the year 1994. It has been filed, challenging the Judgment and decree in O.S.No.426 of 1992, dated 30.09.1993. It is seen that the loan was advanced for a sum of Rs.18,000/- on 06.07.1977.
9. Pending the appeal, the first appellant had died and the second and third appellants were recognized as the legal representatives of the deceased first appellant and additionaly,the appellants 4 & 5 were also impleaded as the appellants. It is seen that the entire transactions has been under litigation for the past 25 years. It is an admitted fact that the appellants are agriculturists.
10. The learned counsel for the appellants relied upon the decision reported in 2001 (1) CTC 662 ? A.S.Ramakrishnan Vs. Bank of Baroda, in which, the Division Bench of this Court had granted interest at 6% per annum. The said judgment has been delivered on facts similar to the present appeal. To be honest to the learned counsel for the appellants, it is to be appreciated that he has not challenged the amount claimed in the suit, but has sought relief with respect to the rate of interest alone. I hold that the Suit has to be decreed for a sum of Rs.41,335.65/- and the rate of interest can be fixed at 6% per annum.
11. In the result, the appeal is partly allowed. In so far the principal amount of Rs.41,335.65/- is concerned, theimpugned Judgment and decree is confirmed. In so far as the rate of interest in concerned, the impugned Judgment and decree is set aside and the principal amount shall carry interest at the rate of 6% per annum from the date of the plaint till the date of realisation. No costs. Consequently, connected miscellaneous petition is closed.
To
1.The Additional Subordinate Judge, Dindigul.
2.The Record Keeper, VR Section, Madurai Bench of Madras High Court, Madurai..