Legal Question in Banking Law in India

Interest not charged after case filled?

in case bank default can bank charged interest after they filled a suit and in this behalf any circular or high court/supreme court case are available ? pls answer me.


Asked on 1/08/09, 8:38 am

3 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Interest not charged after case filled?

interest will be according to the court's order once suit is filed.

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Answered on 1/09/09, 6:34 am
J. Radhakrishnan independent Practice

Re: Interest not charged after case filled?

Once a suit is filed, rate of interest is governed by Sec.34 CPC and is in the discretion of court. So also is the case with applications for recovery in the DRT. The awarding and rate of interest are determined by court/DRT only from the date of suit/application and there is no question of a Bank charging interest at its discretion after the suit is filed. The answer to your question is in the Code of civil Procedure and Recovery of Debts due to Banks and Financial Institutions Act and no decision is necessary for elucidating the above position.

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Answered on 1/08/09, 10:01 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Interest not charged after case filled?

After the filing of suit, the bank cannot charge any interest in the account because the award of post-suit interest is in the discretion of the court.

The Banks have a practice of keep adding interst in their ledger and they call it as a "memoranda". It is for their internal purposes.

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Answered on 1/08/09, 11:41 am


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