Co.Op.Bank in Maharshtra filled suit in co.Op.Court for recovery amount of Rs. 1 Lakh in 1994 ( 18 yeras back).
Judgement of co.op.Court is expected in a week now. I like to know from members that Court can order to pay interest more than the principal amount. Whether dambupat may applicable in this case. Bank offical are expecting Rs. 7 lakhs interest on principal amount of Rs. 1 Lakhs. I am waiting for opinion of members in this matter.
As Maharastra Co-operative Societies Act,1960 Bank cannot levy interest more than principal amount if the principal amount is less than or equal to Rs. 1 lac. Please check whether bank has levied interest more than principal amount on the date of filing the suit. Damdupat will apply if bank has levied any such interest. Court will justify your claim of Damdupat if there is any. Your answer to will court order to pay interest more than principal?-As per my knowledge court will order with costs and future interest (from the date of filing the suit)as it may deem fit and court cannot order out of law.Hence my opinion would be that court cannot charge any such interest. My suggestion to you would be, you must carefully and thoroughly go through the statement of account submitted by the bank. Check the interest on Demand Promissory Note and compare it with your statement of account. Check whether the interest levied by the bank is on P.C.P.A (percent per annum) basis. Check whether bank has levied interest on quarterly rest, monthly rest. Try hard to search mistakes from the statement.