the parties. In a given case if the court finds that in the principal sum adjudged on the date of the suit the component of interest is disproportionate with the component of the principal sum actual… and post-decree interest at a lower rate or may even decline awarding such interest. The discretion shall be exercised fairly, judiciously and for reasons and not in an arbitrary or fanciful manner.”

Reportable/Non-Reportable
                                           
      
  
     Appeal No. 116 of  2023-DRAT-Kolkata
     IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
   THE HON’BLE  MR.  JUSTICE ANIL KUMAR SRIVASTAVA
               CHAIRPERSON
  Appeal No. 116 of 2023
         (Arising out of O.A. 3966 of 2017 in DRT-II, Hyderabad) 
1. Smt. D. Sandhya Bhaskar Sridevi, w/o of D.S Srinivasa Prasad Reddy 
residing at H no. 8-2-695/R/4,  Paradise Shankar Valley, Road No.12, 
Banjara Hills, Hyderabad - 500 034;
2. D. Srinivasa  Prasad  Reddy,  son   of Sri  V.R.R. Damegunta, residing 
at  H no.8-2-695/R/4, Paradise Shankar Valley, Road  No.12, Banjara 
Hills, Hyderabad - 500 034.
                
       … Appellants
-Versus-
Federal    Bank   Limited,     6-2-981,     Maruthi     Plaza,     Khairatabad, 
Hyderabad – 500 003.  
 
                                 … Respondent
Counsel for Appellants     
 …   
Mr. Nemani Srinivas 
Counsel for Respondents          
 …   
Ms. Aparajita Rao
Ms. Swastika Roy
JUDGMENT                         
:   
15th May, 2024
THE APPELLATE TRIBUNAL : 
Instant appeal has arisen against judgment and order 
dated 27.02.2020, passed by Learned DRT-II, Hyderabad, 
allowing O.A. 3966 of 2017 (The Federal Bank Limited -vs- 
Smt. D. Sandhya Bhakar Sridevi & Another).   O.A. 3966 of 
2017 was filed by the Bank before the Learned DRT for 
issuance of a Certificate for Rs.53,75,447.27p. The fact of 
availment of Rs.50.00 lac by the Defendants is not in 
dispute. 
However, 
a 
part 
satisfaction 
of 
memo 
for 
Rs.3,44,664.00 was filed by the Bank.  Accordingly, Learned 
DRT allowed the O.A. for issuance of Certificate for an 
amount of Rs.50,30,783.27p  with future interest at the rate 

2
      
  Appeal No. 116 of  2023-DRAT-Kolkata
of 15.48%  per annum simple pendente lite and future till 
realisation. Feeling aggrieved by the rate of interest, 
Appellant preferred the appeal. 
I have heard the Learned Counsel for the parties and 
perused the record.
2.
At the very outset, Learned Counsel for the Appellant 
submits that he is pressing the appeal on the point of 
interest only.  It is submitted that the rate of interest as 
agreed between the parties was 14.05% with variable rate 
of interest. However, Learned DRT granted interest at the 
rate of 15.48% per annum simple. Learned Counsel submits 
that Section 34 C.P.C. provides for granting interest at the 
rate of 6%.
 
3.
Learned Counsel for the Respondent submits that it is 
discretion of the Learned DRT to grant pendente lite and 
future interest which is duly exercised by the Learned DRT.  
Section 34 of the C.P.C. reads as under :
“(1) Where and in so far as a decree is for the payment of 
money, the Court may, in the decree, order interest at such rate 
as the Court deems reasonable to be paid on the principal sum 
adjudged, from the date of the suit to the date of the decree, in 
addition to any interest adjudged on such principal sum for any 
period prior to the institution of the suit,  [with further interest 
at such rate not exceeding six per cent. per annum as the Court 
deems reasonable on such principal sum], from the date of the 
decree to the date of payment, or to such earlier date as the 
Court thinks fit:” 
 
4.
The use of word ‘may’ in Section 34 confers discretion 
on the Court to award or not to award interest or to award 
interest at such rate as it deems fit. Such interest, so far as 
future interest is concerned, may commence from the date 

3
      
  Appeal No. 116 of  2023-DRAT-Kolkata
of the decree and may be made to stop running either with 
payment or with such earlier date as the court thinks fit.  In 
a Constitution Bench of the Hon’ble Apex Court in Central 
Bank of India -vs- Ravindra & Others [(2002) 1 SCC 367 
it was held in paragraph 55 Sub-para (8) that :
“(8) Award of interest pendente lite and post-decree is 
discretionary with the court as it is essentially governed by 
Section 34 CPC dehors the contract bet

…