Punjab National Bank vs Progressive Polyplast Co. Pvt. Ltd. And ...

The Supreme Court held that the principal amount for calculating future interest includes both the actual loan and the capitalized interest, as established in Central Bank of India v. Ravindra (2001). The Court clarified that once interest is capitalized, it becomes part of the principal sum. Consequently, the appeal was allowed, and the orders of the High Court and Executing Court were set aside, affirming the appellant's entitlement to interest on the principal amount of Rs. 10,54,742/- from the date of the suit's institution.