Decided on January 17,2006



K.J.Paratwar, - (1.) THIS is an application for recovery of Rs. 20,13,017.20 with interest @ 18% p.a. on principal sum of Rs. 13,66,249.15 from the date of filing the original application till full realisation.
(2.) The facts of the case, most of which are admitted, are that prior to November 1995 the defendant was working in. 'Credit Lyonnais'. He had availed of housing loan from the employer. By letter dated 19.11.1995, the applicant appointed the defendant as a team leader and relationship Manager in marketing on certain terms and conditions which are not relevant for the purpose of this original application. As and incident of employment, the applicant took over defendant's outstandings of house loan in the books of Credit Lyonnais which were to the tune of Rs. 15,74,100/- on 12.2.1996. The agreement inter alia provided for discretionary rate of interest @ 2% p.a. or rate to be decided by the applicant from time-to-time. The legal mortgage in the applicant's favour of Flat No. 5, in the building Delana, situated over Plot No. 261-A, Central Avenue, Chembur, Mumbai-400071 was agreed to be created. The term also provided that in the event of defendant being terminated or in the event he ceases to serve the applicant the then balance outstandings should be forthwith payable. The defendant executed demand promissory note and letters of authorisation in the applicant's favour as also power of attorney to create legal mortgage. The defendant paid monthly instalment of Rs. 4,5797- from February 1996 to October 2002.
(3.) ON 23.12.1999 the applicant terminated, with immediate effect, the defendant's employment, the reasons for which having no bearing in this original application are not stated. The defendant instituted Suit No. 1310 of 2000 in Hon'ble High Court of Judicature at Bombay challenging the termination and restraining the applicant Bank herein from dispossessing him from the flat and from not recovering any amount at a rate higher than the agreed terms under the agreement dated 12.2.1996. The applicant contends that since after the defendant's termination, the transaction became commercial and as such he is liable to pay interest @ 18% p.a. As the defendant did not pay, despite repeated demands, the Bank filed this original application.;

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