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P. B. BALAJI
Praveen Chordia – Appellant
Versus
Asaithambi – Respondent
JUDGMENT :
P.B. Balaji, J.
1. ''It is not my principle to pay interest and it is not in my interest to pay the principal'', of late, appears to be the motto of unscrupulous debtors.
2. This Second Appeal has been filed against the judgment and decree dated 12.02.2018 made in Cross Objection No. 450 of 2009 on the file of the V Additional City Civil Court, Chennai, allowing the Cross Objection modifying the judgment and decree dated 27.03.2008 made in O.S. No.3358 of 2007 on the file of XII Assistant City Civil Court, Chennai.
3. The Second Appeal arises in a suit for redemption of mortgage filed by the plaintiffs. The defendants have come up by way of the present Second Appeal, questioning only the rate of interest awarded by the First Appellate Court. There is no appeal preferred as against the judgment and decree against the plaintiffs adjudicating the principal amount payable by them in the suit for redemption of mortgage.
4. The parties are described as per their litigating status before the Trial Court.
5. The 1st plaintiff is the owner of the suit property, having purchased the
The court established that mortgage interest rates must reflect contractual agreements and economic realities, allowing for discretion in determining reasonable rates based on inflation and property ....
The court emphasized that mortgage interest rates must reflect contractual agreements and market conditions, allowing for discretion in determining reasonable rates beyond the statutory limit.
In mortgage redemption suits, the burden of proof lies on the plaintiff to establish payments made, and interest is awarded based on contractual terms unless otherwise determined by the court.
In mortgage redemption suits, the borrower must prove discharge of debts and the court may exercise discretion in interest rates unless agreed otherwise.
While considering a similar issue relating to a loan given by a bank had held that the Court has discretion to modulate interest pendente lite and post decree.
The court has discretion to modulate interest pendente lite and post decree.
The court established that while a lender is entitled to recover loan amounts, the interest rate must be reasonable and within statutory limits, reflecting judicial discretion.
The Court established the principle that the appellant would be entitled to interest at 15% from the date of suit till the date of realization on a sum of Rs.1,88,882/-, and the liability to pay inte....
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