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Regular First Appeal No.28 of 1981, decided on 3rd March, 1987.
---S.8(2)--Payment of interest on judgment debt--Special Court is required by law as it stood at the relevant time to direct payment of interest on judgment debt from date of decree till payment--Omission to give such direction amounts to illegality--Decree of Special Court omitting such direction was modified by High Court without interfering with mode of payment of decretal amount prescribed by Special Court.
Masood Javed for Appellant.
Nemo for Respondent.
Date of hearing: 3rd March, 1987.
This appeal impugns the decree passed by the learned Special Judge (Banking), Rawalpindi, on the 27th November, 1980, in the suit brought by the appellant against the respondents for the recovery of the outstanding debt amounting to Rs.3,55,976.86 only to the extent that it did not provide for interest on the judgment debt from the date of decree till payment as required by section 8(2) of the Banking Companies (Recovery of Loans) Ordinance, 1979, then in force and that -it allowed the respondents to pay the decretal amount by instalments.
2. It is true that the learned Special Judge was required to direct payment of interest on the judgment debt from the date of the decree till payment at the contracted rate or at the rate of two per cent above the bank rate whichever was higher as ordained by the aforesaid provision of law. Omission to order such payment of interest amounts to illegality which must be set right; the respondents will have to pay the interest.
3. As stated by the learned counsel for the appellant the respondents are paying the instalments regularly. Since the appellant will get interest on the judgment debt till its final payment we do not consider it proper in the circumstances to alter mode of payment.
4. In view of the above the appeal is partially accepted and the decree of Special Court is modified to provide for payment of interest on the judgment debt from the date of decree till payment thereof at the contracted rate of fourteen per cent per annum. The amount of interest will also be paid in instalments like the decretal amount after the payment of the decretal amount is exhausted.
H.B.T./M-386/L Decree modified.
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