KERALA FINANCIAL CORP. Vs C.G.NARAYANAN
Bench: K.S. RADHAKRISHNAN,DIPAK MISRA
Case number: SLP(C) No.-001118-001118 / 2011
Diary number: 31402 / 2010
Advocates: P. V. DINESH Vs
NISHE RAJEN SHONKER
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Non-Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE TO APPEAL (CIVIL) No. 1118 OF 2011
Kerala Financial Corporation ..
Petitioner
Versus
C. G. Narayanan ..
Respondent
O R D E R
1. Petitioner - Kerala Financial Corporation (for short
“Corporation”) sanctioned a loan of Rs.2,65,000/- to the
respondent and the order was communicated to the
respondent by the Sanctioning Letter No. C1/646/2245/75
dated 29.12.1975 (Annexure P/1). Corporation submits as
per Clause 31 of the Sanctioning letter, the Corporation has
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a right to make enhancement of rate of interest on loan from
time to time. According to the Corporation, the respondent
committed default in making regular payment of the loan
amount, consequently, the Corporation enhanced the rate of
interest to 11.75% per annum. Notice of enhancement of the
rate of interest was also issued and served on the
respondent.
2. Aggrieved by the said notice, respondent filed a suit
being O.S. No. 479 of 1995 before the Munsif Court at
Trichur, for an order of declaration that the respondent is
liable to pay interest only at the rate of 5.5% per annum.
Learned Munsif Court decreed the suit as prayed for.
Corporation, aggrieved by the said judgment of the Munsif
Court, preferred an appeal being A.S. No.123 of 1991 before
the District Court and the District Court also dismissed the
appeal.
3. Aggrieved by the same, the Corporation preferred a
second appeal being S.A. No. 869 of 1996 before the High
Court, which was dismissed by the High Court. The
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concurrent findings recorded by the courts below are under
challenge in this special leave petition.
4. We notice that the Courts below, including the High
Court, placed reliance on the judgment of the Kerala High
Court in P.J. Mathew v. Kerala Financial Corporation
(1989) 1 KLT 904, against the Corporation claiming the
enhanced rate of interest, over and above 5.5% per annum.
Courts below found that, on facts, the respondent is entitled
to get the benefit of that judgment. Judgment of the Kerala
High Court in P.J. Mathew (supra) was challenged by the
Corporation before this Court in SLP (C) No. 409/89. That
SLP was heard along with SLP No. 413/89 and was
dismissed vide order dated 10.07.1989.
5. Under such circumstances, we find no reason to
entertain this petition and the same stands dismissed.
……………………………..J. (K.S.
Radhakrishnan)
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………………………………J. (Dipak Misra)
New Delhi, December 4, 2012