STATE BANK OF INDIA Vs. SWAPAN BASAK

JUDGEMENT

(1.) This appeal has been filed by the State Bank of India against a portion of the judgment with regard to payment of interest. That portion of the judgment is quoted below :

(2.) This matter is no longer res integra in view of the decision of the Apex Court in AIR 1998 SC 1101 (N. M. Veerappa v. Canara Bank) wherein the Apex Court pointed out that in a mortgage suit, the matter is covered by O. 34, R. 11 of the CPC. The Apex Court pointed out that the Court has a discretion with regard to grant of future interest, but has no discretion with regard to interest before filing of the suit and pendente lite in view of O. 34, R. 11 (a) (i) which clearly states as follows :

(3.) So, where the rate is fixed, the Court is bound to grant that rate of interest. In view of that matter, the decree shall stand modified and rate of interest till the date of the decree shall be 121/2% being the contractual rate at quarterly rest. The future interest, however, we say shall be 6% simple interest from the date of the decree till realisation of the amount.