LAWS(MPH)-2000-1-23

PUNJAB NATIONAL BANK Vs. LAXMICHAND RAI

Decided On January 27, 2000
PUNJAB NATIONAL BANK Appellant
V/S
LAXMICHAND RAI Respondents

JUDGEMENT

(1.) The Punjab National Bank filed a suit (C.S. No. 15-A/87), in the Court of Additional District Judge, Seoni, against six defendants for recovery of an amount of Rs. 1,00,949.50 paise on account of loan advanced to them on 13-10-1980.

(2.) A written statement was filed by the defendants denying the plaint allegations. However, on 17-4-1988 the matter was referred to the Lok Adalat constituted under the Legal Services Authorities Act, 1987. The plaintiff and the defendants agreed to the reference on specific condition that the entire claim be decreed and in regard to the interest pendente lite and instalments, the matter was left to the discretion of the Lok Adalat. The statement of Manager of the plaintiff-Bank K. K. Awasthi (P.W.1) was recorded, who stated that the Bank would agree with the compromise provided the entire claim is decreed with pendente lite interest. The compromise arrived at before the Lok Adalat contains the signature of Shri K. K. Awasthi, Bank Manager. Consequent upon the compromise, the Additional District Judge, Seoni passed an order on 17-4-1988 and in para 10 of the order, the following direction was passed, which is as extracted below :The Additional District Judge also directed that the plaintiff was entitled for refund of Court-fee amount to the tune of Rs. 8240/- in accordance with provisions of Sec. 2(1) of Legal Services Authorities Act, from the State Government. This order/ decree is a subject matter of challenge at the behest of the Bank by means of this First Appeal filed under Sec. 96 of the Civil Procedure Code.

(3.) Heard the learned counsel for the appellant and learned counsel for the respondents. learned counsel for the appellant submitted that firstly, the appellant/ plaintiff never agreed for instalment and secondly the claim though decreed in full the trial Court granted instalment of Rs. 6000/- every half yearly reducing the interest pendente lite and future at the rate of 10% per annum and this grant of lesser rate of interest is bad.