1993 (4) TMI 338

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....ts with future interest at the rate of 6 per cent p.a. from the date of the suit. 4. Even though the suit is decreed, the plaintiff bank aggrieved by the rate of interest as awarded is at the rate of 6 per cent p.a. this first appeal challenging the decree. Shri B.M. Agarwal, learned counsel for the plaintiff- Bank, has contended that the rate of interest granted by the learned trial Judge is contrary to the provisions of Section 34 of C.P.C. as the loan advanced was for the commercial purpose and as such the rate of interest should have been to the extent of 15 per cent p.a. is demanded by the bank. On the contrary, Shri Joydeep Chatterji, learned counsel for the respondents contended that the loan was granted for the professional purpo....

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....ile considering the claim of the bank for recovery of the loan granted for the factory, this court rightly treated that loan was for the commercial purpose, and granted the interest in excess of 6 per cent as demanded by the Bank in that case. 10. We are unable to appreciate as to how the ratio laid down in that case applies in the present case. On the basis of admitted facts, the loan in that case was granted for establishment of factory and for purchase and installation of machinery. In the present case the loan is admittedly granted for the purpose of construction of hospital. 11. For determining the interest it is necessary to consider the provisions of Section 34, C.P.C. which reads as under; "34. (1) where and in so far....

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....ut of a commercial transaction, the rate of further interest may exceed 6 p.c. p.a., but shall not exceed the contractual rate of interest, or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions. Explanation I specifies what is the meaning of 'nationalised bank', while Explanation II provides that for the purpose of Section 34, C. P. C., a transaction is a commercial transaction if it is connected with the industry, trade or business of the party incurring the liability. 13. The question which, therefore, falls for consideration is whether the loan advanced for the construction of hospital can be termed as a commercial transaction, and, whe....

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....s either manufactured or himself purchased." (Osborn's Concise Law Dictionary, Sixth Edition by John Burke). 17. The word 'business' is defined as "one's regular occupation, profession, or trade" (Concise Oxford Dictionary, ibid, page 151). Similarly, the word "businessman" is also defined as" a man or workman engaged in trade or commerce, esp. at a senior level." (supra). In Stroud's Judicial Dictionary, ibid, the word 'business' is described as "having more extensive meaning than the word 'trade'. It has further been clarified that ordinarily speaking, "business is synoni- mous with trade". It is also defined as "anything which occupies the time and attention and labour of a man, for the purpose of p....