Aparesh Kumar Singh, J. - (1.) Heard learned counsel for the parties.
(2.) Plaintiff/ Bank is in appeal against the judgment dated 7.5.1999 in Title(Mortgage) Suit No. 28 of 1997 as the learned Trial Court of Sub Judge- III, Jamshedpur has while decreeing the suit on admission as against Defendant Nos. 1,2,6 and 7 with cost , and ex parte against Defendant nos. 3,4 and 5 with cost, holding them jointly and severally liable for the repayment of the dues of the Plaintiff- Bank, reduced the contractual rate of 16.5% per annum to 6% per annum from the date of suit till realization, on the principal amount i.e. the loan amount. However, the rate of interest prior to the institution of the suit shall be as per the loan agreement.
(3.) Facts of the parties as borne out from the pleadings on record are narrated in brief hereunder:- Defendant nos. 1 to 4/ Respondents herein took Cash Credit Facilities to the limit of Rs. 6 lakhs against stocks and Rs. 3 lakhs against bills, total being Rs.9 Lakhs from the Plaintiff- Bank under agreement dated 2.6.1989 and created securities in favour of the Bank in the nature of property and assets of the Firm, M/s D.S.P. Constructions and letters of guarantee executed by Defendant no. 5 to 7. Since the Defendants failed to repudiate the loan amount and failed to maintain the accounts regularly, the Plaintiff- Bank instituted the suit after serving lawyers notice calling upon the Defendants to pay the entire dues of the Bank, which they failed to do. Defendant nos. 1,2,6 and 7 filed written statement and admitted the dues of the Plaintiff Bank. They contended that due to bad financial position they were not able to pay the dues of the Bank in time but they agreed to pay it in just, proper and reasonable installments. They however alleged that interest @ 16.5% per annum is too excessive, therefore interest should be calculated @ 6% per annum under the provision of Order 34 Rule 11 of the C.P.C. Defendant no. 3,4, and 5 did not appear to contest the suit which proceeded ex parte against them. Following issues were framed:- 1.Is the suit, as framed, maintainable. 2.Has the Plaintiff any cause of action for the suit. 3.Is the Plaintiff entitled for a decree for realisation of Rs.7,10,448.57 paise with interest pendente lite till realisation of the amount at the rate of 19% per annum against the defendants. 4.Is the plaintiff entitled for any other relief or reliefs as claimed in the plaint. The learned Trial Court upon consideration of the evidence of the parties and the documents exhibited on behalf of the Plaintiff including the admission of the Defendants held the Plaintiff entitled to a decree for realization of the amount due.;