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NON-REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.  4270-4271 OF 2016 (Arising out of SLP(C) No.23923-23924/2012)

Pragati Builders & Promoters & Ors. … Appellant(s)

Versus

M/s Ram Murty Pyara Lal & Ors., etc. … Respondent(s)

WITH

CIVIL APPEAL NOS.2611-2612 OF 2012

J U D G M E N T

ANIL R. DAVE, J.

1. Leave granted.

2. Application for substitution is allowed.  

3. Heard the learned counsel for the parties and perused the  

impugned judgment.

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4. Looking at the facts of the case, in our opinion, the amount  

of interest awarded by the High Court to the appellants is on  

lower side.  We, therefore, direct that instead of simple interest  

at the rate of 6 per cent per annum, the appellants should be  

paid simple interest at the rate of 15 per cent per annum from  

the  date  on  which  the  appellants  had  paid  the  amount  for  

purchase of the property in question to the respondent bank.  

5. The respondent bank shall calculate the amount of interest  

payable to the appellants at the rate of 15 per cent per annum  

as on today and shall indicate the same to the appellants and  

other respondents.  The amount of interest so calculated shall be  

paid to the appellants.  The respondent bank has retained the  

amount  received  from the  appellants,  the  auction purchasers  

and therefore,  on the  said  amount,  the  bank is  presumed to  

have earned interest.   We presume that the bank has earned  

interest on the said amount, which is quantified at 2 per cent  

above the bank rate prevailing at the relevant time.  So, on the  

said amount, interest calculated at the above rate shall be paid  

by  the  bank  and  the  balance  amount  of  interest  shall  be

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recovered from the respondent-borrower so as to see that the  

total amount of interest paid to the appellants comes to 15 per  

cent per annum.   

6. The bank shall calculate the amount of difference payable  

by  the  respondent-borrower  and  convey  the  same  to  the  

borrower and the  borrower shall  pay  the  said  amount  within  

four months from today along with further amount of interest at  

the differential rate payable by him till the date of payment of  

the entire amount.  

7. The bank shall pay the amount of interest at the rate of 15  

per cent per annum to the appellants within two months from  

today  along  with  the  amount  of  auction  price  paid  by  the  

appellants and the appellants shall be paid interest till the date  

on which they are paid the auction price and interest thereon.

8. Upon receipt of the auction price and interest thereon, the  

appellants shall return all documents of title to the bank and the  

bank shall return the same to the borrower when the borrower  

pays his share of interest to the bank.

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9. Except the aforestated change in the rate of interest, we do  

not modify the impugned judgment and if the amount of interest  

is not paid by the borrower, the consequences which might have  

been stated in the impugned judgment would follow.

10. The appeals stand disposed of as allowed in above terms  

with no order as to costs.

CIVIL APPEAL NOS.2611-2612 OF 2012

11.    Learned counsel submitted that in view of the disposal of  

the above appeals, these appeals have become infructuous and  

the same are dismissed as such.

…………………………J. (Anil R. Dave)

…………………………J. (Adarsh Kumar Goel)

New Delhi APRIL 12, 2016.