Interest

Sec. 34 -Suit for money - Plaint amount includes principal with interest - Plaintiff is entitled to get future interest  for the said plaint amount with interest - [Indian Bank vs M/s. M.R.Prabhu and Sons. 2001 (2) KLT 720 = 2001 (2) KLJ 223.  K.S.Radhakrishnan & G.Sasidharan (J&J)]

Or. 34- Agricultural Loan - Interest Suit for redemption of mortgage by bank for the amounts advanced to agriculturists - Unless default is established penal interest cannot be decreed. Claim for compound interest is not justified. [ Aboobacker vs Canara Bank. 1999(2) KLT 234. ILR 1999 (1) Kerala 503 P.A.Mohammed&D.Sreedevi(JJ) 

CPC - Sec. 42 - Money decree calculating interest at 19.5 % - Executing court cannot reduce it -No such contention could be taken . [T.I.George vs New Bank of India. 2001 (3) KLT  SN 36, Page No.26 M.R.Hariharan Nair (J)]


Or. 21, Rules 66(2)(c) & 90, Order 34, Rule1 -- Mortgaged property sold in auction and delivery effected in 1977 as per proceedings initiated by the first mortgager -- Subsequently puisne mortgagee initiated suit and got the same property sold after five years for a lesser amount in auction and delivery effected in 1987 -- Petition filed by first purchaser to set aside sale is not maintainable -- Remedy is to file seperate suit. [Kerala Financial Corporation Vs. Syndicate Bank. 1999(1) KLT 637(FB) = 1999(1) KLJ 702. (K.K. Usha, K. Narayana Kurup & S. Marimuthu (JJ)].


O
r. 21, R.90 & R.66(2)(c) & Order 34 -- Prior encumbrance over the property proclaimed for sale is a material -  particular to be shown in the ssale proclamation -- Puisne mortgagee will not be entitled to sell the property without redeeming the prior mortgagee -- The remedy for the puisne mortgagee is to redeem the prior mortgagee before attempting to sell the property in court auction. [Kerala Financial Corporation Vs. Syndicate bank. 1999(2) KLT 637 (FB) = 1999(1) KLJ 702. (K.K. Usha, K. Narayana Kurup and S. Marimuthu (JJ)].

GO TO MAIN PAGE