In the case of United Bank of India v Rasayan Udhyog the Calcutta High Court held that interest pend...........

Civil Procedure Code (CPC) 1908 Plaint and Written Statement

In the case of United Bank of India v. Rasayan Udhyog the Calcutta High Court held that interest pendente lite and interest for the post decretal period are:

Are in the nature of compensation to the plaintiff, for being kept out of the money due to him

Are discretionary as indicated by the word ‘may’

Both (A) and (B)

None of these

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Explanation:

- Option 1: Interest pendente lite and post decretal interest serve as compensation. They compensate the plaintiff for the delay in receiving money that is rightfully theirs. This ensures fairness, as the plaintiff doesn't lose out financially due to proceedings.

- Option 2: These interests are discretionary. The use of the word "may" indicates that the court has the discretion to award interest, meaning it is not mandatory but depends on the case specifics.

- Option 3: Both aspects are correct. The interests are both compensatory and discretionary, reflecting the dual nature of their legal function.

- Option 4: This option suggests that none of the statements are correct, which doesn't align with the legal principles discussed.

Correct Answer: Option 3 - Both (A) and (B)