Discretionary pendente lite and post-decree interest was refused and upheld on appeal in a borrower liability dispute.

Pendente lite and post-decree interest under Section 34 and Order 34 Rule 11 CPC were treated as discretionary rather than mandatory, so a reasoned refusal could stand where supported by the facts. The appellate court should not normally replace the trial court's exercise of discretion unless it failed to apply its mind or acted on an erroneous basis. On the borrowers' liability, the equitable circumstances, and the delay in prosecution of the appeals, the refusal to award interest was upheld, with substance preferred over technical formality where justice so required.

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Issues: Whether pendente lite and post-decree interest under Section 34 and Order 34 Rule 11 of the Code of Civil Procedure, 1908 is discretionary, and whether the appellate court should interfere with the trial court's refusal to award such interest.

Analysis: The expressions used in Section 34 and Order 34 Rule 11 confer discretion on the court to award or refuse interest, and the governing authorities recognise that the award of such interest is not obligatory. The court also relied on the principle that an appellate court should ordinarily not substitute its discretion for that exercised by the court below, unless the latter failed to apply its mind. In the facts of the case, the borrowers' liability, the equitable circumstances, the long delay in prosecution of the appeals, and the material placed before the court supported the refusal of discretionary interest. The court further observed that substance should prevail over technical formality where social and economic justice is served.

Conclusion: The refusal to award pendente lite and post-decree interest was upheld, and no interference was called for.

Final Conclusion: The appeals failed because the grant of interest was discretionary and the trial court's refusal, viewed in the factual setting, was sustained.

Ratio Decidendi: Where a provision confers discretion to award pendente lite or post-decree interest, an appellate court will not ordinarily interfere with a reasoned refusal of such interest if the discretion can be supported on the facts and justice of the case.

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