9911796707
TMI Blog2022 (1) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. There are no doubt that the method of computation adopted by the appellant herein is amounting to compounding of interest. In such circumstances, the finding of the trial court cannot be interfered with. As rightly found by the trial court, none of the documents produced in support of the case of the appellant provide for compounding interest to be collected from the accused person. Even as per the Ext.P11 promissory note and also as per the evidence of PW1 what was permissible is interest at the rate of 24% per annum. However, the cheque amount which tallies the final figure as shown in Ext.P10 account statement includes interest at compounding rates which was not authorised even as per the evidence adduced by the appellant himsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cient . Even though statutory notice was sent, the 1st respondent did not pay the amount or sent any reply. The complaint was submitted in the above circumstances. 3. In support of the contentions raised in the complaint, the authorised representative of the appellant was examined as PW1 and Exts.P1 to P11 were marked from the side of the appellant. After prosecution evidence, 1st respondent was examined under Section 313 of Cr.P.C. and the incriminating materials were put to him. Exts.D1 to D2 were marked from the side of the 1 st respondent. After examining the materials brought out during the trial, the learned Magistrate arrived at the conclusion that the 1st respondent has not committed offence under Section 138 of NI Act and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as compounding of the interest. The said question arose in that case because, the installment amount would contain element of principal amount as well as interest element. Therefore, while charging interest on the installment amount as a whole, that would amount to charging of interest on the interest element contained in the installment amount. It was held that such computation would not amount to compounding of interest. 6. However, the factual situation contained in this case is completely different. The account statement produced as Ext.P10 would clearly indicate that every month interest was being added to the principal and the interest for the next month was calculated on the entire amount, including the previous arrear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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