Interest amount more than principal amount.

S S ravi (Querist) 04 July 2012 This query is : Resolved
Co.Op.Bank in Maharashtra filled suit in Co.Op.Court for recovery of loan amount of Rs. 1 Lakh some 18 years ago. Now the judgment in the matter is expected in with 1-2 weeks. Bank officials are expecting court verdict as 7 Lakhs interest on principal amount of Rs. 1 Lakh. I request for members opinion whether court can order for 7 times more interest amount than principal amount. Whether Damdupat is applicable in this matter.

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R.K Nanda (Expert) 04 July 2012
Yes, court can make such order.

Rajeev Kumar (Expert) 04 July 2012
Why not if the borrower have not paid the interest since the many years then the court can pass such order. In the failure of paying the amount ordered by court then the court will pass the order for the attachment of property of borrower

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