Law: Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997

Section: 7

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)---Ss. 7 & 11---Estoppel, principle of---Loan facility availed by the appellants from the bank---Failure of the appellants to discharge their liability against the said facility led to a suit for recovery filed by the bank against them---Interim decree was passed by the Trial Court followed by a final decree for recovery of the outstanding amount---Appeal was filed by the appellants against the decision of the Trial Court---Contention of the appellants was that the bank had illegally enhanced the rate of interest to pile up a colossal suit amount---Validity---No plea regarding enhancement of the rate of interest was raised by the appellants in the suit, therefore, they would be precluded from raising the same at the appellate forum---Litigants are precluded from raising altogether a new plea before the Appellate Courts, which has not been agitated before the lower forums. (b) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997)----- ----S.11---Interim decree, finality of--Appellants challenged the interim decree alongwith the final decree in appeal---Objection of the bank that the interim decree passed against the appellant had attained finality and could not be challenged by the latter-- Validity---Section 17(2) of Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 7 997 provided that an interim decree to all intents and purposes would be deemed to be a decree passed under the said Act including the right of filing of appeal and initiation of execution proceedings---Decree passed under S.11(2) of the Act was appealable under S.21 of the Act within a period of thirty days from such decree---No appeal having been filed by the appellants against the interim decree within the prescribed period, the same had attained finality and was a past and closed matter, which could not be agitated while challenging the final decree---Appellants, after passing of the interim decree, admitted the outstanding amount by filing an application seeking permission from the Trial Court for the payment of due amount under the said…

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