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Madhya Pradesh High Court · body

1995 DIGILAW 581 (MP)

United Commercial Bank v. Rupa

1995-07-20

R.D.VYAS

body1995
JUDGMENT This appeal is directed against the judgment and decree passed by the learned Addl. District Judge, Mandsaur in Civil Suit No. 1-B/81, whereby the lower Court was pleased to decree the suit of the appellant. However, the rate of interest that was granted was 5% per annum. The only point agitated by Mr. Mahajan for the appellant is that the transaction between the appellant and the respondents is commercial and reading the document Ex. P-14, which is agreement, he argued that the contractual rate between the parties was 13% p.a. In that view of the matter, he argues that when the contractual interest is already proved by document contract between the parties, there was no reason for the lower Court not to have granted the contractual rate of interest. He said that the law is very well settled on the point and it does not require any authority to be cited. Having heard the learned counsel for the parties, I feel that he is absolutely justified in saying that the contactual rate of interest in commercial transaction ordinarily has to be granted. In this case the lower Court has not found any special reason to have acceded to the request made by the respondents for allowing the rate of interest other than the contractual rate of interest. In that view of the matter, the Bank is entitled to get 13% p.a. instead of 5% interest granted by the lower Court. In that view of the matter, the appeal is allowed to the aforesaid extent. The decree is accordingly modified. The Bank will be entitled to get interest @ 13% and not 5% p.a. A decree be drawn accordingly. The appeal is allowed with costs. Counsel's fees as per schedule.