UCO Bank, Palani through its branch manager vs Sri Annalakshmi Hotel Represented by its prop S Sivaraj — 2/2025

The Principal Sub Judge Palani decreed UCO Bank's suit against the defendants for recovery of Rs. 4,10,361/- with simple interest at 9.4% p.a. from the date of suit till decree, holding the defendants liable on a MUDRA loan that had defaulted. The court rejected the bank's claim for penal interest citing Supreme Court precedent that banks are not entitled to pendente lite penal interest, giving the defendants 4 months to repay the amount. This case analysis is maintained by casestatus.in based on publicly available court records.