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Judgment
S.P. Goyal, J.—This appeal has arisen out of a suit filed by the Bank of India, Respondent No. 1, for the recovery of Rs. 7,13,006.82 on account of the. loans advanced to the Appellants and Respondents Nos. 2 to 5. The Appellants contested the suit on various pleas which are reflected in the following issues on the basis of the pleadings of the parties:-
Whether the suit has been properly brought by Plaintiff bank through Shri T. R. Kapoor and he is competent to file the suit ? OPP.
To what amount Plaintiff is entitled to recover from the Defendants as principal and from which Defendant ? OPP.
Whether Plaintiff is entitled to interest. If so to what extent, OPP.
Whether suit is barred by time, OPD
Whether plaint is vague and does not specifically mention the details. If so its effect.
Whether Defendant No. 1 stands dissolved. If so its effect on this suit ? OPD
Whether there is no cause of action ? OPD
Whether orders of the High Court were not properly complied by the Plaintiff bank ? If so its-effect ? OPD.
Relief.
After recording evidence, the suit was decreed by the trial Court with: further interest at the rate of 16-1/4 per cent per annum.
It is not necessary to notice in detail the pleadings of the parties, or the evidence produced by them because the challenge in the appeal was confined to issue No. 2 alone. The challenge on this issue only was to the extent that the interest was alleged to have been debited in the new account of the Appellant opened on January 16, 1978, and had also been claimed in the suit. In reply, learned Counsel for the Respondents offered that let the accounts be checked from a qualified chartered accountant and whatever double debitting and payment was found, the relief may be given to the Appellants to that extent. Consequently with the consent of the parties Mr. Nalin Kumar, Chartered Accountant was appointed vide orders dated April 17, 1986 to go into the accounts and made the report. According to his report, Rs. 63,949.80 has been charged twice and the Appellants are therefore, entitled to the relief to that extent.
The only other argument raised by the learned Counsel for the Appellants was that the interest at the rate of 16-1/4 par cent per annum was excessive and that the decretal amount may be allowed to be paid by easy installments. The liability of the Appellants having arisen out of a commercial transaction, the interest allowed at the con-tractual rate which is less than the prevalent bank rate cannot be said to be excessive and the contention raised in this regard, therefore, has no merit. The prayer for payment of the amount by instilments is, however, allowed as detailed hereinafter.
Consequently this appeal is partially allowed and a decree in the amount of Rs. 6,49057/- is passed with future interest at the rate of 16-1/4 percent per annum from the date of the suit till its realization in favour of the Plaintiff and against the Defendants. The Defendants-may pay the amount in installments of Rs. 2 lakhs every six months till the whole amount is cleared. The first instilment of Rs. 2 lakhs shall be paid on or before June 30, 1986. If any instilment is not paid by the date, the decree-holders shall be entitled to execute the decree and realize the whole amount due to them. In view of the partial success of the appeal, the parties are left to bear their own costs in this Court.