STATE OF KERALA Vs. A.ABDUL RAHIM

JUDGEMENT

(1.) This appeal is against the decree granted by the trial court granting interest for the delayed payment of the amount due to the plaintiff from the State Government, the defendants. The plaintiff had earlier approached this Court in Writ for getting the amount due and this court directed the State Government to pay the amount due within a period of two months with a further direction that it will not carry any interest till that time. It is thereafter the present suit was instituted for recovery of the interest for the delayed payment. It was granted by the trial court, against which, the State Government/defendants came up in appeal firstly on the ground that the plaintiff is not entitled to interest in view of the direction issued in the writ petition by this court. Secondly on the ground that the trial court has granted 12% interest as pre-litigation interest, which is not in conformity with the mandate under Sec. 34 C.P.C..

(2.) The questions came up for consideration are whether it is permissible to bypass the jurisdiction of civil court in the matter of grant of interest to the sum due or any delayed payment or any other matter by way of writ jurisdiction and whether Sec. 34 C.P.C would operate regarding pre-litigation interest or its adjudication.

(3.) The entitlement of pre-litigation interest is not governed by Sec. 34 C.P.C., but governed by the contract/understanding by the parties, subject to the application of Sec. 23 of the Contract Act and other provisions governing the field including the provisions under the Negotiable Instruments Act, Usurious Loans Act and the like. Sec. 34 of C.P.C. is extracted below for reference: