KAKA SINGH Vs. CHAND SINGH

JUDGEMENT

(1.) THE only point on which notice of motion was given in this regular second appeal is about the interest allowed in the case. This appeal has been filed by Kaka Singh, the defendant, against whom a suit for the recovery of 15,000/- was filed as compensation for the injuries caused to Chand Singh. The trial Court decreed the suit on June 2, 1987 for a sum of Rs. 10,000/- with future interest at the rate of 12 per cent from the date of the suit till realisation of the decretal amount. In all, a sum of Rs. 11,500/- was awarded as damages After deducting a sum of Rs. 1,500/- which was deposited by the defendant earlier, a sum of Rs. 10,000/- was decreed. The lower appellate Court on appeal by Kaka Singh defendant affirmed Judgment and decree of the trial Court.

(2.) SECTION 34 of the Code of Civil Procedure reads as under :-" 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 percent 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 transactions. Explanation I.--In this sub-section, "nationalised bank" means corresponding New bank are defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970 ). Explanation II.-- For the purposes of this section, a transanction is a commercial transanction, if it is connected with the industry, trade or business of the party incurring the liability. 2. Where such a decree is silent with respect to the payment of further interest on such principal sum from the date of the decree so the date of payment or other earlier date, the court shall be deemed to have refused such interest, and a separate suit therefor shall not lie. " A bare perusal of the provision would show that it is discretionary with the Court while passing decree of the recovery of money to allow interest from the date of the suit up to the date of decree and for future interest, after the decree and realisation, the interest could be allowed only at the rate of 6 percent per annum. In the present case, the grant of interest on the sum of Rs. 10,000/- which was decreed at the rate of 12 per cent per annum from the date of the suit till the decree was justified. However, the grant of interest at same rate after passing of the decree till realisation is not justified, as the liability has not arisen out of commercial transaction. Thus, while allowing this appeal, the Judgment and decree of the Courts below are modified to the extent that the suit of the plaintiff shall stand decreed for a sum of Rs. 10,000/-with interest at the rate of 12 per cent per annum thereon from the date of the institution of the suit upto the date of the decree of the trial Court and with interest at the rate of 6 percent per annum after the decree of the trial Court till realisation. The parties are left to bear their own costs.