EVEREST INDUSTRIAL CORPORATION & OTHERS. vs GUJARAT STATE FINANCIAL CORPORATION.

The Supreme Court held that interest on the principal amount due under a loan agreement is payable according to the terms of the agreement until the entire amount is paid, as per Section 32 of the State Financial Corporations Act, 1951. The Court clarified that Section 34 of the Code of Civil Procedure, 1908 does not apply to proceedings under Section 31 of the Act, and thus, the appellants are liable to pay interest despite the decree being silent on this matter. The appeal was dismissed, affirming the High Court's decision.