RAMGARHIA CO-OPERATIVE BANK LTD. Vs. SURJIT KAUR

JUDGEMENT

(1.) THE short question which revolves around this controversy is whether the Bank is entitled to get agreed rate of interest stipulated in the contract or simple rate of interest @ 11 % as awarded by the learned DRT. The learned Presiding Officer DRT passed the impugned order on 28.2.2008, the relevant portion of which is reproduced as under -

(2.) I have heard the Counsel for the parties. I find considerable force in the argument advanced by the learned Counsel for the appellant that the learned Presiding Officer DRT had the discretion to reduce the rate of interest only with effect from the date of issuance of notice under Section 13(2) of the SRFAESI Act, and not prior to that. The account of the respondents was declared NPA on 14.2.2006 when the notice under Section 13(2) of the SRFAESI Act was issued.

(3.) I find no force in this argument. The abovesaid question can be raised at any time. Acceptance of a part of the amount does not mean that the appellant has forgone the remaining amount. Section 13(2) of the SRFAESI Act is reproduced as follows: