- (1.) THE appellant is a house building cooperative society and had given a loan of Rs. 60,000.00 to Respondent 1. According to the terms of the agreement, Respondent 1 was to start repayment after six months of the disbursement of the first instalment and the entire loan amount was to be repaid in 36 half-yearly instalments within a period of 18 years. The first payment was to start on 1/3/1984.
(2.) RESPONDENT 1 did not make the payment in terms of the agreement and a letter was written by the appellant requiring the said respondent to clear the dues. When the payments were not made, the appellant took the dispute before the arbitrator. The claim of the Society in 1984 before the arbitrator was for the amount then outstanding which was Rs. 65,433.00 which included interest and principal. It appears that an ex parte award was made on 29/1/1985 requiring Respondent 1 to pay a sum of Rs. 63,732.00. The said amount carried future interest @ 15% on the principal sum of Rs. 60,000.00. When the amounts were not paid, the appellant sought to execute the decree. A notice was sent to Respondent 1 informing him that his movables would be put to auction. The said Respondent 1 then chose to file a writ petition challenging the proposed action of the appellant. In response thereto, the contention of the appellant before the High Court was that the award which had been passed had become final and the same had not been challenged by Respondent 1. It was further the case of the appellant that even during the pendency of the execution proceedings Respondent 1 had appeared and admitted the amount under the award and had requested the sales officer that the amount may be re-phased so that he could pay the dues @ Rs. 2,000.00 per month.
(3.) DURING the pendency of the case, a sum of Rs. 60,000.00 representing the principal amount received was repaid. The only question which then arose for consideration before the High Court pertained to the demand of Rs. 63,000.00 by way of interest.;