1987 PLP 3038 (MLD)

Ss. 6,8(2) & 12--Civil Procedure Code (V of 1908), S.34--Interest- Award of pendente lite interest falling within discretion of the court- Court not bound to allow such interest at the contracted rate--Special Banking Court while decreeing Banking Company's suit for recovery of outstanding amount of loan directing judgment-debtors to pay pendente lite interest at the rate of 5 per cent per annum and post, decision interest at the rate of 13 per cent per annum till liquidation of their liability--Decree-holder (Banking Company) desiring that the judgment-debtors should pay pendente lite interest at the contracted rate of 14 per cent per annum--Trial Court was not obliged to order pendente lite interest at the contracted rate--It had discretion to allow interest at the rate of 5 per cent and even it could disallow pendente lite interest--Exercise of discretion by Trial Court in fixing pendente lite interest not shown to be arbitrary--Impugned order, held, did not call for interference. Ayaz Hassan for Appellant. Nemo for Respondent. Date of hearing: 28th April, 1987. ABAID ULLAH KHAN, J.--On the respondents' confession of judgment the learned Special Court (Banking), Lahore, decreed the appellant's suit for recovery of the outstanding amount of loan against the respondents. The facility of paying the judgment debt by monthly instalments was given to the respondents. They were directed to pay pendente lite interest at the rate of 5 per cent per annum and post decision interest at the rate of 13 per cent per annum till the liquidation of their liability. In case of commission of default in making payment of two instalments during a year the whole of the decretal amount was to be recoverable in lump sum. The appellant has come up in appeal against the decision of the learned trial Court in so far as it allowed the respondents to pay the decretal amount in instalments and pendente lite interest at the rate of 5 percent per annum. The appellant desires that the respondents should pay pendente lite interest at the contracted rate of Rs. 14.00 per annum as also the entire decretal amount in lump sum.

2. The learned counsel for the appellant says that since the respondents defaulted in paying two instalments during a year the entire decretal amount has become payable in lump sum. His only grievance left is that the pendente lite interest should be at the rate of Rs. 14.00 per cent. The learned trial Court was not obliged to order pendente lite interest at the contracted rate; it had the discretion to allow interest at the rate of 5 per cent per annum and even it could have gone to the extent of disallowing pendente lite interest. The exercise of discretion used by the learned Court in matter of fixing the pendente lite interest at 5 per cent per annum is not shown to be in any manner arbitrary. Therefore, its order of fixing payment of pendente lite interest at 5 per cent per annum does not demand any interference. The appeal is left with no force and is dismissed leaving the appellant to bear its own costs. S.Q./U-13/L Appeal dismissed.