JAGDISH SINGH Vs. BHARAT SINGH

JUDGEMENT

(1.) AFTER hearing learned counsel for the parties. I am of the opinion that no interference is called for with the findings of fact on merits recorded by the courts below. However, I am of the opinion that the Courts below have erred in granting interest at the rate of 10% per annum on the decretal amount from the date of institution of the suit till realisation. Under section 34 of the Code of Civil Procedure, interest could be granted on the principal amount at a rate which the court deemed reasonable. Interest can further be granted not exceeding 6% on the principal amount adjudged from the date of decree till realisation. The courts below have, however, granted interest at the rate of 10% per annum from the date of decree till realisation. This could not be done. Under Section 34 C. P. C. as already noticed, interest could not be granted at a rate higher than 6% per annum from the date of decree till realisation, the present being not a case of commercial transaction.

(2.) IN view of the above, the appeal is disposed of with a modification in the judgment and decree of the courts below only to the extent that the plaintiff shall be entitled to future interest at the rate of 6% per annum instead of 10% as granted by the courts, on the principal sum adjudged from the date of decree till realisation.