- (1.) THIS is an appeal by the plaintiff united Bank of India. It arises out of O. S. Suit No. 460 of 1983. The appeal is directed against the judgment and decree dated May, 23, 1986 passed by a learned Single Judge of this court. That decree had been passed partly in favour of the plaintiff but the plaintiff has felt aggrieved by the reduced interest both interim and on judgment and by the installments granted by the learned Judge in decreeing the plaintiff's claim.
(2.) THE plaintiff appellant had lent and advanced various amounts, to the defendant no. 1, The New Glencoe Tea Company Ltd. on hypothecation of moveables including the plants, machinery, stores, raw materials, finished and semi finished products etc. In 1983 the plaintiff instituted the above suit against the defendants for a decree for Rs. 58,41,677. 25, interim interest and interest on judgment at the rate of. Rs. 18 percent; for a declaration that moveables specified in the Schedule stand charged and/or mortgaged in favour of the plaintiff and a decree for sale thereof.
(3.) WHEN this suit came up for hearing before the learned trial judge, it was found that pending the suit a sum of Rs. 26,28,647. 60 had been paid by the defendant no. 1 leaving a balance of Rs. 32, 13,029. 65. Accordingly the learned trial Judge decreed the suit against defendant No. 1 for a sum of Rs. 32,14,000/- together with a sum of Rs. 5,50,000/- towards interim interest and interest on judgment at 71/2 percent. He further directed payment of the decretal amount in instalments extending over 7 years and only on default of payment of three consecutive instalments there will be a decree for sale. Plaintiff appellant has felt aggrieved by the fact that while the contractual rate of interest was 18% the interim interest and interest on judgment had been decreed at a rate not exceeding 71/2 percent and further by the fact that the decree providing for payment on instalment has deferred sale of the moveables indefinitely beyond seven years.;