State Bank Of India, Corporate Office, ... vs Sh. Rajesh Kumar Verma Aged 43 Years S/O ... on 20 December, 2013
16.The plaintiff has also sought interest at the rate of 13% per
annum on the loan amount from date of filing till its realization.
It is pertinent to mention that the transaction entered into
between the parties was a commercial transaction. It is well
settled that in a commercial transaction by the public financial
institutions the contractual rate of interest is the rule and any
departure is a rare exception. Moreover, Section 21A of the
Banking Regulation Act, 1949, is a bar to reopening by the
court, the contractual rate of interest entered into between the
commercial banks and its debtor, if the interest charged by the
bank is consistent with the circular issued by the Reserve Bank
of India. It is also to be noted that under Section 34 of the Code
of Civil Procedure the court in a money decree may award
Digitally signed by
SWAYAM SWAYAM SIDDHA
SIDDHA TRIPATHY
Date: 2024.02.09
TRIPATHY 16:45:16 +0530
(Swayam Siddha Tripathy),
Civil Judge-02(South)
Saket Courts, New Delhi
09.02.2024 (Page 6 of 7)
CS SCJ 206/2023 STATE BANK OF INDIA V. RAJESH KUMAR
interest exceeding six per cent, on a commercial transaction but
not beyond the contractual rate. Hence, the contractual rate of
interest i.e. 13% p.a. stands accordingly allowed.