UNION OF INDIA Vs. AKHILESH KUMAR DWIVEDI

JUDGEMENT

(1.) PANKAJ Mithal, J. List revised.

(2.) NO one appears for either of the parties. Therefore, I have perused the record myself and proceed to decide the appeal on merits.

(3.) SECTION 34, C. P. C. provides that where a decree is for payment of money the Court can order interest at a reasonable rate on the principal sum adjudged from the date of the suit to the date of decree of the suit this would be in addition to any interest on such principal sum for any period prior to the institution of the suit. Besides the above, it also provides that further interest not exceeding 6% per annum may be awarded from the date-of decree till its payment. SECTION 34 C. P. C. , for the sake of convenience, is quoted below: "34. Interest.- (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent per annum -as the Court deems reasonable on such principal sum from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit. Provided that where the liability in relation to the sum so adjudged had ' arisen out of a commercial transaction, the rate of such further interest may exceed six per cent per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transac tions. Explanation I.-In this sub-section 'nationalised bank' means a corre sponding new bank as defined in the Banking Companies Acquisition and Transfer of Undertaking Act, 1970 (5 of 1970 ). Explanation II.-For the purposes of this section, a transaction is a com mercial transaction, if it is connected with the industry, trade or business of the party incurring the liability. "