Pendente lite interest in mortgage enforcement cannot be denied outright; the court's discretion is limited to fixing the rate.

In mortgage enforcement proceedings, the mortgagee was entitled to pendente lite interest after the debt had been adjudged payable. The Court held that Section 34 and Order 34 CPC, read with mortgage principles under the Transfer of Property Act, did not permit a complete refusal of interest; the judicial discretion extended only to fixing its rate. Competing creditor claims and liquidation considerations were relevant only in balancing equities for that limited purpose. The trial court's blanket denial of further interest was modified, and interest was directed at a reduced rate for the relevant post-August 1977 period.

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Issues: Whether a secured creditor was entitled to interest during the pendency of the proceedings after the amount had been adjudged payable, and whether the Court had discretion to refuse such interest altogether or only to regulate the rate of interest.

Analysis: The claim of the secured creditor under the mortgage was accepted and the dispute concerned only the period after August 1977, when the learned trial Judge declined to grant further interest without giving reasons. The Court examined Section 34 of the Code of Civil Procedure and Order 34 of the Code of Civil Procedure in the light of the mortgage law principles under the Transfer of Property Act. Reading the authorities together, the Court held that where a mortgage decree or analogous order is made, the mortgagee is entitled to pendente lite interest, and the Court's discretion lies in fixing the rate, not in denying interest altogether. The liquidation of the company and the competing claims of other creditors were relevant only to the extent of balancing equities in fixing the appropriate rate.

Conclusion: The Court held that interest could not be wholly refused and that the only discretion was as to its rate. The order was modified by directing interest at half per cent per annum for the relevant period after August 1977 and denying further interest thereafter.

Final Conclusion: The appeal succeeded only to the extent of securing limited pendente lite interest for the secured creditor, with the trial court's order otherwise maintained.

Ratio Decidendi: In a mortgage enforcement proceeding, the Court is bound to grant pendente lite interest, and its discretion is confined to determining the rate of such interest rather than refusing it altogether.

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