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The Court of Appeal held that mortgage-auction notices are governed by special mortgage instructions, not general civil procedure, and upheld the auction.
The Supreme Court held that bank loan interests continue to accrue until the entire debt is repaid, but such accrual is limited by the in duplum rule, meaning interest cannot exceed the outstanding principal. The Court found that the applicant's claim for damages from the auction could not be set off against the loan as it was not part of the original subject matter. The Court adopted the expert's calculation of the outstanding principal and interest, ordering repayment accordingly.
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Bank loan interests continue to accrue after loan agreement termination and mortgage auction, provided the total interest does not exceed the outstanding principal (in duplum rule). New claims not raised in the original trial cannot be examined in judgment review. The applicant is liable for the outstanding principal and accrued interest, both capped at the principal amount determined by the expert. Damages for counsel and procedural fees are not awarded as both parties partially succeeded.
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