SURESH KUMAR Vs. CHARAN SINGH

JUDGEMENT

(1.) Suit filed by Suresh Kumar petitioner for the recovery of Rs. 1600.00 i.e. Rs. 1200.00 as principal and Rs. 400.00 as interest, was- decreed. Future interest was allowed at the rate of 2% per annum. The decree holder took out execution. The judgment debtor, respondent herein filed objections and submitted that future interest more than 6% per annum could not be granted in view of the provisions of Sec. 34 of the Civil Procedure Code.

(2.) The executing Court on a consideration of the matter came to the conclusion that judgment debtor will make payment of the decretal amount with future interest at the rate of 6% instead of 24% per annum. The objection petition was disposed of accordingly by order dated 4.5.1991. Hence this revision.'

(3.) Learned counsel for the parties have not put in appearance. I have gone through the order passed by the executing Court and on a consideration of the matter I am of the opinion that no exception can be taken to the order passed by the executing Court. Sec. 34 of the Code provides that future interest cannot be granted beyond 6% per annum except in cases relating to commercial transactions. In Siri Chand and another Vs. Central Bank of India , it was held that the Court decreeing the suit could not award interest more than 6% per annum on the principal amount. The Court has no jurisdiction to allow interest beyond 6% per annum or to award compound interest and any judgment and decree passed in contravention of the provisions of Sec. 34 of the Code is without jurisdiction and thus can be challenged even in execution proceedings being a nullity and a void decree to that extent. I am in respectful agreement with the view taken in Siri Chand's case (supra). From the impugned order, I find that the executing Court has precisely taken the same view. In this view of the matter the revision petition has no merit and the same is consequently dismissed. No. costs. Petition dismissed.