SURESH KUMAR KAIT,J. - (1.) Vide the present appeal, the appellants have assailed the order dated 11th February 2003, passed by the VII-Additional Chief Judge, City Civil Court, Hyderabad, in O.S. No. 246 of 1998, whereby, the aforesaid suit has been decreed for Rs. 1,95,30,891.55 ps., with interest @ 13.5% p.a. from the date of the suit till the date of realization. The 1st respondent/plaintiff-Corporation was directed to give credit to the tune of Rs. 1,65,76,205/- made by the 1st appellant-Bank during the pendency of the suit on the respective dates of payments.
(2.) The 1st respondent-Corporation filed aforementioned suit by stating that the A.P. Women Co-operative Finance Corporation Ltd., Ameerpet, Hyderabad (hereinafter shall be referred to as "Corporation") was established in the year 1975 on the eve of the International Women Year. The twin objectives of International Women Year were; promotion of equality between men and women and the active involvement of women in National development. The Corporation had undertaken the massive programme of employment oriented Agro industries, Cottage and small scale industries by providing technical assistance, financial assistance etc. The Corporation, in order to raise funds, advanced loans, encouraged thrifts and invested surplus funds by depositing in the 1st appellant-Bank (hereinafter shall be referred to as "the Bank"), as under : "1. Rs. 25,00,000/- (Rupees Twenty Five Lakhs) invested on 5-7-1993 for 90 days @ 14% and renewed for 90 days upto 27-3-1995 and further one year upto 27-3-1996 at 13% and further renewed upto date at the same rate. 2. Rs. 24,00,000/- (Rupees Twenty Four Lakhs) invested for one year at 13% upto 31-3-1995 and renewed for a further period of one year upto 31-3-1996 at 13% and further renewed upto date at the same rate. 3. Rs. 14,00,000/- (Rupees Fourteen Lakhs only) invested for one year upto 31-3-1995 and renewed for a further period of one year upto 31-3-1996 at 13% and further renewed upto date at the same rate. 4. Rs. 12,00,000/- (Rupees Twelve Lakhs only) invested for one year upto 31-3-1995 and renewed for a further period of one year upto 31-3-1996 at 13% and further renewed upto date at the same rate."
(3.) Before aforementioned deposits, the Administrative Officer of the Bank addressed a letter dated 14.07.1994 to the Corporation to mobilise deposits in their Bank and promised that they will pay more interest than the other Nationalised Banks i.e. @ 10.5% p.a. on the deposited amount. Basing on the above noted letter, the Corporation was convicted and issued Cheques bearing Nos. 740890 and 740891, both dated 15.07.1994, for Rs. 50,00,000/- each, in the Bank, with an undertaking to deposit the above said two amounts for a period of one year with interest @ 10.5% p.a. It was agreed between the Bank and the Corporation to pay interest quarterly. Accordingly, the Corporation requested the Bank to send interest on earlier F.D.Rs as under : JUDGEMENT_15_LAWS(APH)9_2017.html However, the 3rd respondent/3rd defendant i.e. the Chief Executive Officer of the Bank, instead of repaying the interest, by letter dated 05.04.1995, requested to renew FDR Nos. 6892 to 6896 for a further period of one year. By letter dated 26.07.1995, the 3rd respondent requested to renew FDR Nos. 3311 and 3312 of Rs. 50,00,000/- each, carrying interest @ 10.5% p.a. The 3rd respondent assured to pay interest quarterly @ 13.5% p.a. if the F.D.Rs are renewed and requested to send two F.D.Rs fell due on 15.07.1995. Accordingly, the Corporation, by a letter dated 28.07.1995, agreed for the renewal for a further period of 180 days from 16.07.1995 and instructed to pay interest on the above deposits with Bankers Cheque in the name of the Managing Director of the Corporation and stated that the agreed interest shall be @ 13.5% p.a. from the date of renewal. The Bank acknowledged the receipt of the above said F.D.Rs. The Bank had issued two cheques vide Cheque No. 291936 for an amount of Rs. 2,67,123.25 ps., and another Cheque No. 291937 for an amount of Rs. 3,02,054.80 ps. The said cheques were dishonoured due to non-availability of funds. However, the Bank, by letter dated 14.09.1995, again sent the Bankers Cheque for the said amounts, vide cheque No. 975577.;