N.M. VEERAPPA versus CANARA BANK

N.M. VEERAPPA versus CANARA BANK

Order 34 Rule 11 CPC applies in mortgage suits for awarding future interest, not Section 34 CPC. The court has discretion to fix the rate of pendente lite and subsequent interest and is not bound to award the contractual rate. Section 21-A of the Banking Regulation Act, 1949 does not override Order 34 Rule 11 CPC.

Source-derived case information.

Parties
Appellant: N.M. Veerappa; Respondent: Canara Bank
Jurisdiction
India
Judgment Date
27 January 1998
Procedural Posture
Civil Appeal / Appeal From Karnataka High Court Decision (rfa No. 1/88)
Outcome
Appeal allowed
Legal Topics
Mortgage Suit, Interest Rates, Judicial Discretion, Banking Regulation Act, Order 34 Rule 11 CPC
Banking Law Civil Procedure Contract Law Mortgage Suit Interest Rates Judicial Discretion Banking Regulation Act Order 34 Rule 11 CPC

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Parties

N.M. Veerappa

Appellant

Canara Bank

Respondent

Procedural Posture

Civil Appeal / Appeal From Karnataka High Court Decision (rfa No. 1/88)

Legal Issues

  1. 1 Whether Section 34 CPC or Order 34 Rule 11 CPC applies to mortgage suits for future interest
  2. 2 Whether the court has discretion to reduce contractual interest rates in mortgage suits
  3. 3 Effect of Section 21-A Banking Regulation Act, 1949 on Order 34 Rule 11 CPC

Ratio Decidendi

Order 34 Rule 11 CPC applies in mortgage suits for awarding future interest, not Section 34 CPC. The court has discretion to fix the rate of pendente lite and subsequent interest and is not bound to award the contractual rate. Section 21-A of the Banking Regulation Act, 1949 does not override Order 34 Rule 11 CPC.

Court Disposition

Appeal allowed

Orders

  • Rate of future interest from date of suit fixed at 6% per annum, as determined by the trial Court, is restored.
  • No order as to costs.