Car Mart Ltd. and Another vs Pan Asia Bank Ltd. – sllr 2004 volume 3 page 056

In the case between Pan Asia Bank Ltd (Plaintiff) and Car Mart Ltd. and another (Defendants), the court addressed the issue of whether penal interest is recoverable under the Debt Recovery Act and whether its inclusion affects the court’s jurisdiction to vary a decree nisi pursuant to the statutory framework. It was held that the proviso to section 6(3) of the Debt Recovery Act empowers the court to vary the decree nisi and to exclude penal interest when warranted, ensuring that only legally recoverable sums are decreed. The legal reasoning reaffirmed the principle that courts possess discretion at the conclusion of proceedings to adjust the decree to reflect amounts lawfully due, regardless of the initial claims submitted. This decision relied on an interpretation of sections 6(3) and 22