N.M.Veerappa vs Canara Bank on 27 January, 1998
4. In view of the submissions made by the learned counsel for the parties and perused the materials produced before this Court, it is admitted that the petitioner borrowed money from the respondent/bank and there is no dispute regarding the calculation of the due amount to the bank. The main contention of the petitioner is that interest portion is exorbitant. On the basis of the terms and conditions of the agreement between the parties, the Tribunal has fixed the interest at the rate of 21% per annum. But the same is contrary to the decision of the division Bench of this Court reported in 2017 (3) LW 565, wherein the details of the interest rate was discussed by considering Section 34 of the CPC and Section 152 of the Tamil Nadu Co-operative Societies Act and was held that under the Act, the Arbitrator and the Tribunal have got absolute discretion to award interest at any reasonable rate not exceeding contractual rate following the principles laid down by the Hon'ble Supreme Court in N.M.Veerappa Vs. Canara Bank, 1998-2-L.W. 26. In the light of the said decision of the division Bench of this Court, the Tribunal has got the discretionary power to award interest at any reasonable rate.