Interest to be paid at the contractual rate.

1. Aggrieved by the award of the Special Tribunal for Co- operative Cases, Madurai, in

C.S. No. 171 of 1989 in so far as it relates to the rate of interest awarded in the judgment and decree at 6 per cent per annum from the date of decree, Madurai City Cooperative Housing Society Limited has filed the present writ petition for quashing the said decree and for direction to the respondents 2 to 4 to pay interest at the rate of 16 per cent per annum on the amount decreed till the date of realisation.

2. The brief facts leading to the filing of the writ petition are stated hereunder: Respondents 2 to 4 herein had executed a mortgage deed of their house in favour of the petitioner on 6. 84 for a sum of Rs. 60, 000 and received only Rs. 42, 000 on several dateS agreeing to repay the said sum together with interest at 14 1/2 per cent per annum. The respondents 2 to 4 had to pay the principal amount of Rs. 42, 000 together with interest of Rs. 14, 285.54 as on 187. Since they failed to pay the amount inspite of repeated demands, proceedings were initiated before the Cooperative Sub Registrar, Madurai in A.R.C. No. 305/86-87 for recovery of the total sum of Rs. 56, 285.54 as on 14. 87 together with subsequent interest with costs. The said proceedings were initiated under the Tamil Nadu Co-operative Societies Act, 1983. The suit claim was admitted by the fourth respondent before the Co-operative Sub Registrar. The Co-operative Sub Registrar passed a decree on 110. 87 for a sum of Rs.58, 740.14 together with further interest at 16 per cent per annum payable to the petitioner.

3. It is further stated that against the said award, the respondents 2 to 4 herein preferred an appeal in C.M.A. (C.S.) No. 171 of 1989 before the Special Tribunal for Co-operative Cases, Madurai/first respondent herein. The first respondent by its order dated 22. 91, partly allowed the appeal and held that from 110. 87 the petitioner is entitled to claim interest at 6 per cent per annum on the principal sum of Rs. 42, 000 till the date of realisation. The Tribunal has disallowed the claim of interest at the contract rate of 16 per cent per annum from the date of decree till the date of realisation. Aggrieved by the said award, the petitioner Society has preferred the present writ petition.

4. Heard the learned counsel for the petitioner as well as respondents 2 to 4.

5. The only point that arises for consideration in this writ petition is whether the award of 6 per cent interest is proper and acceptable.

6. Inasmuch as the respondents 2 to 4 have not disputed the borrowal of the loan amount, the execution of the mortgage-deed and the admission before the Co-operative Sub Registrar, it is unnecessary to refer those aspects once again. In other words, now I am concerned with the rate of interest from the date of decree till the date of realisation. There is no dispute that in the mortgage-deed, the respondents 2 to 4 herein agreed to repay the principal amount together with interest at 141/2 per cent per annum and if there is any default, the Society is entitled to collect interest at the rate of 16 per cent per annum till the date of realisation.

7. Learned counsel for the petitioner apart from pointing out the terms of contract from the mortgage-deed, also brought to my notice Section 90 (8) of the Tamil Nadu Cooperative Societies Act, 1983 which is as follows:

"Section 90 (8): Nothing contained in Section 34 of the Code of Civil Procedure, 1908 (Central Act V of 1908) shall apply to any decision passed or award made under this section."

It is clear from the above provision that Section 34 of the Code of Civil Procedure is not applicable to any decision passed or award made under Section 90 of the Act. On the other hand, learned counsel appearing for the respondents 2 to 4 very much relied on a decision of Ramaprasada Rao, J., (as His Lordship then was) reported in Gurunathan and another v. Villupuram Co- operative Urban Bank Limited, 1979 T.L