LEGAL PRINCIPLE: CIVIL PROCEDURE – Interpretation of Order 27 Rule 8 of the Kano State High Court (Civil Procedure) Rules, 1976 – Three-Fold Interpretation of Statutory Interest Provision
PRINCIPLE STATEMENT
Order 27 rule 8 admits of three interpretations: (1) 10% interest shall be paid on all judgment debts from the date of judgment; (2) the court may in its discretion order otherwise; (3) where the court fails to exercise its discretion, the mandatory 10% interest remains automatic.
RATIO DECIDENDI (SOURCE)
Per Onu, JSC, in Berliet Nigeria Ltd. v. Kachalla (1995) NLC-1851989(SC) at pp. 3–4; Paras E–A.
"In my view, it is firmly established that what falls for determination in this appeal is the construction to be given to Order 27 rule 8 ... A cursory look at the record of proceedings coupled with a careful study of Order 27 rule 8 ... admit of the following interpretation viz: 1. That 10% interest shall be paid on all Judgment debts from the date of judgment. 2. That the court may in its discretion, order otherwise than in 1 above. 3. That where the court fails to exercise its discretion in favour of the judgment debtor as in (2), then the mandatory 10% interest shall remain to be paid is automatic."
EXPLANATION / SCOPE
The statutory interest provision has three aspects: mandatory default rate, judicial discretion to vary, and automatic application if discretion not exercised. The principle guides courts in applying interest rules. The court must expressly order a different rate to vary. The default rate is 10% per annum. The rule applies to all judgments. The judgment creditor is entitled to the default rate if no order is made. The court may exercise discretion based on circumstances. The principle ensures clarity in interest awards.