Civil Appeal challenging the trial court's award of interest only on the principal amount. The Court relied on AIR 2001 SC 3095, holding that the principal plus interest at the suit date constituted the new principal, and partially allowed the appeal.
The amount of Rs.3,24,285.62 is treated as the principal amount instead of Rs.1,99,000/-.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION.
FIRST APPEAL NO.1097 OF 1994.
Bank of ndia : Appellants.
versus
Shri Arun Vishnu Chougule & ors.: Respondents.
Mr.C.R.Dalvi for the appellants.
Mr.V.B.Rajure for Respondent No.5.
None for respondent Nos.1 to 4.
CORAM : D.G.DESHPANDE,J.
DATED : 4th April 2005.
ORAL ORDER
1. Heard Mr.Dalvi for the appellants/Bank.
This appeal is filed by the bank. Even though
there was a decree in favour of the bank, the
only thing that is challenged is that the trial
court awarded interest only on the principal
amount. According to Mr.Dalvi when on the date
of suit the principal amount along with the
2
interest was Rs.3,24,285.62 ps, then that become
the principal amount and not Rs.1,99,000/-. He
relied upon the judgment of the Supreme Court
reported in AIR 2001 SC 3095 [Central Bank of
India v. Ravindra]. Therefore, in view of this
judgment, this appeal is required to be partly
allowed. Hence I pass the following order :-
:ORDER:
The appeal is partly allowed.
The impugned judgment and decree of the
trial Court is modified as under :-
The amount of Rs.3,24,285.62 ps is
treated as principal amount and not
Rs.1,99,000/-. Rest of the order of the
trial Court remains as it is.
No order as to costs as nobody is present
for the respondent Nos.1 to 4.
[D.G.DESHPANDE]
04/04/2005 JUDGE.
2 issues framed by the court
Whether the amount of principal plus interest became the new principal when the suit was filed.
Whether the trial court's award of interest only on the original principal was erroneous.
Colour shows how this judgement treated each authority
Central Bank of India v. RavindraApplied¶4
AIR 2001 SC 3095 [Central Bank of India v. Ravindra] · Who else cites this
Bank of India
Shri Arun Vishnu Chougule & ors.
D.G.DESHPANDE
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court