Search Results Page
Search Results
1 - 10 of 11 (1.53 seconds)The Interest Act, 1978
D. N. Banerji vs P. R. Mukherjee And Others on 5 December, 1952
47. This argument has been countered by the learned A.G.P. by citing the case reported in 1983 (1) LLJ 309 : (AIR 1983 NOC 94), in the case of State of Punjab y. Kuldip Singh. In that matter, the similar questions squarely fell for the consideration of the Court. The Court emphasized various aspects of the ratio laid down in Bangalore Water Supply & Sewerage Board v. A. Rajappa, and in the case of D. N. Banerji_ v. P. R. Mukherjee, . The Court discussed the views recorded by the Supreme Court in those rulings.
The Banking Regulation Act, 1949
Section 80 in The Code of Civil Procedure, 1908 [Entire Act]
Union Bank Of India vs Dalpat Gaurishankar Upadyay on 2 April, 1992
45. Now, dilating on the question of interest, there have been strong arguments on either side. According to the learned advocate for the appellant, the award of interest On the principal amount at the rate of 18% Was
wholly unwarranted. He has also questioned the propriety of the learned trial Judge in awarding the interest on the principal plus the interest prior to the suit. For that, we feel, that he is supported by the ruling of this Court in the case of Union Bank of India v. Dalpat Gaurishankar Upadyay. Without probing any further, we feel, that the ratio laid down in that ruling deserves to be upheld. It is observed that the expression "principal" used in Section 34 of the Civil Procedure Code, means the original amount without the addition thereto of any interest whatsoever. Therefore, granting interest on the principal plus interest prior to the suit would be obviously erroneous. To that extent, therefore, the trial Court has faltered and the same has to be rectified in this appeal. The learned A.G.P. has drawn our attention to the Interest Act, 1978 (14/78) which governs the transaction where no interest has been stipulated nor usage has been established in that behalf. As we have observed herebefore that so far as the claim of interest is concerned, there is no condition whatsoever in the tender awarding or contemplating the payment of interest by the department to the contractor. Obviously, therefore, the claim of the contractor would be governed by this Interest Act, 1978. In Section 3(1)(b) of the Interest Act, it is provided that in the proceeding for recovery of damages, the Court may allow interest to a person entitled to damages at the rate not exceeding the current rate of interest. Now, the current rate of interest has been defined in Section 2(b) of that Act as the highest of the maximum rates at which the interest may be paid on different classes of deposits by different classes of Scheduled Banks in accordance with the directions given or issued to the Banking Companies, generally by the Reserve Bank of India under the Banking Regulation Act. The learned advocate lor the respondent/contractor has vehemently urged that in the notice the claim has been put at 18%. Unfortunately, he has not tendered any evidence to show that these were the rates payable by the Bank on the loans given by Banks with which we are not concerned. On the other hand, ample evidence
has been adduced on behalf of the defendant to show that the current rate of interest payable on the deposits was at the most 11% for three years Schedule is produced on record. An attempt was made to give concession by allowing this rate at 11 1/2% on the ground that the Co-operative Banks give 1/2% more on the deposits. However, the definition of current rate of interest does not take in its sweep the deposits of the Co-operative Banks. It is in respect of Scheduled Banks. All said and done, we are of the view that at the relevant time, the interest rate could not exceed 11 per cent, on deposits. The respondent/contractor is, therefore, entitled to 11% on the above claim on the total sum of Rs. 66,942/- for a period of 3 years prior to the suit, as the claim is governed by the limitation. For facility, we round up this figure to Rs. 67,000/-.