CANARA BANK Vs. NAKUL ENTERPRISES

JUDGEMENT

(1.) This appeal is preferred by the appellant Canara Bank against the judgment and decree passed by the learned trial Judge on 12th January, 1994 in the Suit No. 3025/ 90. The limited point urged before us is with regard to the refusal of the learned trial Judge to award pendente lite interest from the date of the plaint till the date of the decree. The learned Judge no doubt granted interest at 16.5% from the date of the decree i.e. 12th January, 1994 till the date of payment. This refusal to grant the interest from October, 1990 till 12th January, 1994 is the subject matter of this appeal.

(2.) The judgment of the learned trial Judge shows that the decree was passed under Order 20, Rule 11 Civil Procedure Code and while refusing to grant interest pendente lite the learned Trial Judge stated that he was bearing in mind Section 34 Civil Procedure Code as well as Order 20, Rule 11 of the Code of Civil Procedure. He dearly held that the interests of the justice would be met if simple interest on the suit amount was awarded at the rate of 16.5% from the date of the decree and not from the date of institution of the suit. This is clear from the following passage in the judgment:

(3.) We have mentioned the above facts only to highlight that this is not a case of failure or omission on the part of the learned Trial Judge to grant interest from the date of plaint till date of the decree. It is a clear case where the learned trial Judge has exercised discretion not to grant interest for the said period during the pendency of the suit. He relied on the fact that the defendant/respondent agreed to suffer a decree and also took into consideration that he was awarding interest at 16.5% from date of the decree. In the last paragraph the learned Single Judge no doubt stated that in case the defendants make the payment of the suit amount along with simple interest, at the rate of 7% effective from the date of the decree till realisation, in monthly instalments of Rs. 1,00,000.00 each payable on or before 7th day of each month, the aforesaid decree will stand fully satisfied. However, if there be any three defaults in making the monthly instalments of Rs. 1,00,000.00 ; the plaintiff will be entitled to execute for the balance amount of the decree with interest at the rate of 16.5% effective from the date of the decree.