LEGAL PRINCIPLE: CIVIL PROCEDURE – Interest on Judgment Debt – Automatic Application of Statutory Interest on Judgment Debt
PRINCIPLE STATEMENT
Order 27 rule 8 of the Kano State High Court (Civil Procedure) Rules, 1976 is clear and unambiguous: unless the court otherwise orders, a judgment debt carries 10% per annum interest from the date of judgment until it is liquidated.
RATIO DECIDENDI (SOURCE)
Per Ogundare, JSC, in Berliet Nigeria Ltd. v. Kachalla (1995) NLC-1851989(SC) at pp. 26–27; Paras A–B.
"The rule (Order 27 rule 8 of the Kano State High Court (Civil Procedure) Rules, 1976) is very clear and unambiguous. Unless the court otherwise orders: a judgment debt carries 10 per centum per annum interest from the date of judgment until it is liquidated by the judgment-debtor. ... The wording of the rule clearly shows that the judgment automatically carries interest at 10 per centum per annum until it is satisfied."
EXPLANATION / SCOPE
Statutory interest on judgment debt is automatic. The court must order otherwise to vary the rate. The principle applies unless the court exercises its discretion. The interest runs from the date of judgment until satisfaction. The rule is mandatory in nature. The judgment creditor does not need to claim interest specifically. The court may order a different rate. The principle promotes uniformity in judgment debts. The judgment debtor cannot avoid interest. The rule applies to all judgments unless the court otherwise orders.