N M VEERAPPA vs CANARA BANK

The Supreme Court held that in mortgage suits, the applicable provision for pendente lite interest is Order 34 Rule 11 CPC, not Section 34 CPC, as the High Court had erroneously applied. The Court emphasized that the trial court has discretion to award interest at a rate lower than the contractual rate if justified. The appeal was allowed, setting aside the High Court's order that mandated future interest at the contractual rate of 16.5%. The Court directed that the trial court's discretion be exercised in accordance with Order 34 Rule 11 CPC.