The interest for the aforesaid credit facility has been charged by the applicant Bank at the contractual rate from time to time with monthly rests in pursuance of the statutory directive of the Reserve Bank of India under Sections 21 and 35-A of the Banking Regulation Act, 1949. The applicant Bank is maintaining true and correct account with respect to the loan accounts of the defendants in the normal and ordinary usual course of business and a copy of the statement of Accounts by way of computer statement maintained by the Applicant Bank in the normal and ordinary usual course of business and certified under the Banker's Books Evidence Act, 1891 is produced along with this Application. The Applicant Bank has not debited interest for the aforesaid credit facility in view of the directives of the Reserve Bank of India regarding Income Recognition and Asset Classifications of loan accounts, according to which if an account is running irregular for more than 90 days, it has to be classified as 'Non Performing Asset'. This however, does not relieve the defendant from his liability to pay interest. The applicant bank further declares that compound interest has been charged at such rate and capitalized at such periodical rests, as are permitted by, and do not run counter to the directives of the Reserve Bank of India, and no penal interest has been charged in the accounts after the account became Non Performing Assets. The defendants are also liable to pay further interest at the contractual rate at 10.15% for Term Loan with monthly rests from the date of this Application till realization in full and costs of this Application.
