Section 34(2) of civil procedure code

Prabhakar Karandikar (Querist) 28 August 2022 This query is : Resolved
In extraordinary circumstances such as inordinate delay by Judgement Debtor in paying the decretal amount, can the Courts award interest pendente lite even when the decree is silent on the issue of interest pendente lite?

Prabhakar Karandikar

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This discussion examines Section 34(2) of the Civil Procedure Code concerning the award of interest on decrees. It addresses whether courts can grant interest pendente lite when the decree is silent on the matter, particularly in cases of significant delay by the judgement debtor. The Supreme Court's interpretation in Sri Ramnik Vallabhdas Madhvani vs Taraben Pravinlal Madhvani is referenced, clarifying the court's powers regarding interest at different stages.

kavksatyanarayana (Expert) 28 August 2022
Where such a decree is silent with respect to the payment of further interest from the date of the decree to the date of payment the Court shall be deemed to have refused such interest, and a separate suit, therefore, shall not lie.

Dr J C Vashista (Expert) 28 August 2022
Supreme Court in the case titled Sri Ramnik Vallabhdas Madhvani ... vs Taraben Pravinlal Madhvani on 5 November, 2003 has held, inter alia, that
"......Section 34 of the Code of Civil Procedure deals with the question of award of interest. Section 34 C.P.C. as it stood before amendment in February 1977 deals with the question of interest in three stages. First is, interest prior to the date of institution of suit, second stage is interest from the date of institution of suit till date of decree and the third stage is from the date of decree till realisation of the decretal amount. About the first stage, Section 34 does not say anything while about the second stage it says that the interest to be awarded should be as considered reasonable by the Court. About the third stage i.e. from the date of decree till realisation, the power of the Court to award interest is circumscribed i.e. it cannot be more than 6% per annum...."

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