A secured creditor is entitled to interest pendente lite on the mortgage debt, but the court has the discretion to determine the rate of interest.

( 1 ) THIS is an appeal from an order of the learned trial Judge passed on Dec. 14. 1978 on an application under Sections 31 and 32 of the West Bengal Financial Corporation Act, 1951 for sale of charged properties in favour of the West Bengal Financial Corporation. The claim of the petitioner. West Bengal Financial Corporation was not disputed and the learned Judge held, it had been verified from the record of the Company in the possession of the Official Liquidator and after taking into account the claims in terms of the mortgage deed between the Company (in liquidation) and West Bengal Financial Corporation the total claim on account of principal amount, interest. insurance charges and consultant fees up to August. 1977 was a total sum of Rs. 15,65,000 which was declared to be due and payable by the company as secured creditor in respect of the properties mentioned in Annexure A to the mortgage. deed dated 9th February. 1972. The learned Judge thereafter directed payment of the said amount by the Official Liquidator, who was in possession of the mortgaged properties of the petitioning creditor which was securer) for its claim out of the sale proceeds of the secured properties. The Official Liquidator was directed by the learned Judge to pay on account of princinal amount, interest, insurance changes and consultant fees up to August, 1977. The subsequent interest has not been directed to be paid. This is the bone of contention in this appeal.

( 2 ) IT appears that the petition for winding up was presented in Sept. , 1976 and the order for winding up was made On Sept. 6. 1977. Meanwhile West Bengal Financial Corporation which indisputably was a secured creditor under a mortgage deed made an application for examination pro interessee sue of its right in August. 1977. Thereafter in February, 1973 the present application was made by the petitioner for payment of its dues and the order was made, as mentioned hereinbefore in December, 1978.

( 3 ) THE learned Judge did not. as is apparent from the order, grant any interest subsequent to August. 1977 to the petitioning creditor in terms of the mortgage deed. The learned Judge has also not indicated any reason in the order for not granting such interest. In the premises, it was contended, as a secured creditor, until payment, the petitioner was entitled to the full interest at the rate mentioned in the mortgage deed and in not granting such interest, the learned Judge had committed an error. Secondly, it was submitted that the learned Judge had not exercised his discretion. Even if he had there is no indication in the order that he had exercised discretion on proper ground and therefore the order should be set aside. In aid of this submission reliance was placed on certain provisions of the Transfer of Property Act. Our attention was drawn to Sections 58, 60. 67 and 68 of the Transfer of Property Act which inter alia indicate that the secured creditor is outside the scope of winding up proceedings and is entitled to enforce its own right and is entitled to be paid in terms of its mortgage deed. Therefore, it was submitted that the learned Judge in not granting such interest or not securing it even when the company was in liquidation had erred. Interest incidentally was due at 8 1/2% compound. It was submitted that it was in public interest also that the interest should be granted because it was not an unreasonable interest. Indisputably it is the correct position that the petitioner is a secured creditor and does not come within the purview of the winding up proceedings. But. it was contended on be-half of the petitioner that there was no discretion exercised by the learned Judge. It is true that the provisions of the Transfer of Property Act grant the petitioner a right to be paid of its dues in full. But for the enforcement of its rights, the petitioner can sell the mortgaged property. But if it comes to Court for enforcement of its right, it must be regul