- (1.) The Court. -This is an appeal under section 20(7) of the Jute Companies Nationalisation Act, 1980. The appellant Central Bank of India filed a claim before the Commissioner of Payment appointed under the said Act. The appellant Bank was a creditor of R.B.H.M. Jute Mills Pvt. Ltd. (here-in-after also referred to as 'the said company'). The undertaking of the said company was nationalised with effect from 20.12.80 which was the appointed day. The appellant bank is one of the secured creditors of the said company ranking in category 2 of the Part-I to the 2nd Schedule of the said Act. There is no dispute that the total amount due to due appellant as on the appointed day i.e. 20.12.80 was Rs. 16,50,109.20p. The appellant filed the claim with the Commissioner on or about February 28, 1982 and the claimant/appellant claimed further interest for the period from 20.12.80 onwards upto the date of the filing of the claim amounting to Rs. 3,78,551.71p. in addition to the dues as on 20.12.80, which was 12s. 16,50,109.20p. Thus the total claim of the appellant including interest for the period from the appointed day upto the date of filing of the claim aggregated to Rs. 20,28,660.09p. The Commissioner of Payments allowed the claim of the appellant for principal and for interest upto the appointed day i.e. 20.12.80 amounting to Rs. 16,50,109.20p. According to the Commissioner, the interest beyond the date of nationalisation i.e. the appointed day is not admissible under the provision of The Nationalisation Act.
(2.) The only question to be determined in this appeal is whether the appellant bank could claim the interest that accrued to it in terms of the instrument of loan being the letter of hypothecation dated 1.1.79, which provides that as per the said instrument the bank will be entitled to claim interest upto the date of payment.
(3.) Mr. H. M. Duff the learned counsel appearing on behalf of the appellant bank placed various sections of the said Act and submitted that the term "loan" as used in Category 2 of Part-I of the Second Schedule of the said Act included loan along with interest thereon. That the word "load" and/ or the word "secured loan" included interest payable in accordance with the agreement of loan could hardly be disputed under ordinary, circumstances. When there is a question of repayment of any liability, on account of any loan arises, it naturally would include the interest payable on such loan. However, so far as this statute is concerned, this is a statute which has been given overriding effect by virtue of section 24 of the said Act. The said section reads as follows : "The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act or in any decree or order of any Court, tribunal or other authority.";