The Court has the discretion to award interim interest and interest on judgment, and the contractual rate of interest is not mandatory. The Court also has the jurisdiction to grant instalments to the judgment debtor to payoff the amount decreed, even in a suit for sale of movable property.

This suit was instituted by the United Bank of India in 1986, inter alia, claiming a decree for Rs. 67,11,944.09p. against the defendant Nos. 1 to 7, declaration of charge on the movable assets and decree for sale etc. In the said suit an interlocutory application has also been made, inter alia, praying for appointment of Receiver and other reliefs.

2. Mr. P. K. Mullick learned Counsel appearing with Mr. Nirmal Mitra Advocate for the defendants has submitted that the defendants are willing to submitts a decree without raising any controversy as to the quantum of interest charged by the Plaintiff bank upto the date of the suit. However, the learned Counsel has submitted that the Court should award interim interest and interest on judgment not at the contractual rate, but at such rate as the Court may deem fit and proper on the facts of this case. He has also submitted that the defendants should be allowed reasonable monthly instalments for payment of the decretal dues.

3. The two contentions which call for consideration are firstly, whether the Court has any discretion in the matter of awarding interim interest and interest on judgment and secondly whether this Court has any jurisdiction to grant instalment to the judgment debtor to payoff the amount decreed.

4. It has been submitted by Mr. Pratap Chatterjee, learned Counsel appearing for the Bank that interim interest and interest on judgment should be granted on contractual rate of 18% per annum. Mr. Chatterjee has contended that this Court has no discretion in the matter of granting interim interest and interest on judgment. He has emphasised that the public undertaking is entitled to interim interest and interest on judgment at the contractual rate.

5. This question came up for consideration before Division Bench of this Court in the case of (1) State Bank of India v. B. Gupta P. Ltd. reported in AIR 1987 Cal 64, where Mr. Chatterjee contended to the contrary. There the Division Bench held that the Court had no discretion so far as the interest antecedent to suit is concerned. It must be at the contractual rate. The interest pendentelite and future interest are however, in the discretion of the Court. In that view of the matter the contention of Mr. Chatterjee has to be rejected.

6. The question however, is at what rate the interim interest and interest on judgment should be allowed in this case. This question will necessarily depend on the facts and circumstances of a particular case. Mr. Chatterjee has contended that the facts of the case do not warrant any reduction in the contractual rate of interest. Reliance has been placed in the case of (2) United Bank of India v. The New Glencoe Tea Co. Ltd. reported in 1986 (2) CHN 330. In that case a decree was passed by the trial Court for Rs. 33 lakhs with interim interest 6% per annum and interest on judgment at the rate of 7½ % per annum and the defendant was allowed to pay the decretal amount in 7 years by instalments. On appeal, the said decree was modified by the Appellate Court to the extent that the interim interest was calculated @10% per annum upto the date of the Appellate Court decree i.e., 1st October, 1986. The said suit was instituted in 1983 and decreed on 23rd May, 1986. From the operative part of the appellate court judgment it would appear that interim interest was allowed @ 10% per annum upto 1st October, 1986 being the date of the Appellate Court judgment and decree. Interest on judgment was allowed @ 6 % per annum although the trial Court awarded interest on judgment @ 7½ % per annum.

7. It may be mentioned that in that case the defendant was allowed by the appellate decree to pay the entire decretal dues within three years. Presumable the appellate Court was of the view that the entire decretal dues would be paid within three year and that might be the reason for reducing the rate of interest on judgment. In that case the decree was for Rs. 33 lakhs. In the instant case the decree is for Rs. 67 lakh