RAM SWAROOP KHATTAR Vs. FOREMOST INDUSTRIES INDIA LIMITED

JUDGEMENT

(1.) The judgment debtor has filed the Execution Application No. 88/90 under Section 47 read with Order 21 Rule 90 and Sec 34 of Civil Procedure Code . challenging the validity of the decree passed in Suit No. 360/ 84 granting pendente lite and future interest at the rate of 18% per annum on the suit amount. The challenge is on the ground that grant of interest, on the suit amount is contrary to Section 34 of Code of Civil Procedure in as much as the decree awards interest not on the principal sum only but on the suit amount which includes interest as well as principal.

(2.) By judgment and decree dated 18th April, 1984, as modified on 12th July, 1984, the suit of the plaintiff for recovery of Rs.2,55,000.00 filed under the provisions of Order 37 of Code of Civil Procedure was decreed. The plaintiff has also been awarded pendente lite and future interest at the rate of 18 % per annum. Mr. Mohan, learned Counsel for the judgment debtor, contends that the Court can award pendente lite and future interest only under the provision of Section 34 and thus the interest can be awarded only on the principal sum.

(3.) Learned Counsel relies upon the decision of Single Judge of Punjab &Haryana High Court in ShriChand v. Central Bank of India and Another, 1983 (1) C.L.J. 547 holding that the Court has the jurisdiction to grant interest after filing of the suit only in accordance with the provisions under Section 34 of Code of Civil Procedure and any order made in contravention thereof would be without jurisdiction and it would be open to challenge even in execution proceedings, being a nullity and void decree. The submission of Mr. Mohan is that as the decree of which execution is sought awards interest on the suit amount, namely, principal and interest and the decree, to that extent, is void and unexecutable.