1979 Supreme(AP) 184
Andhra Pradesh High Court
Judges : A.SEETHARAM REDDY
P.R.Saigal - Appellant
Versus
State Bank of India - Respondent
Decided On : 04-22-79
The court's discretion to award future interest is limited by section 34 of the CPC, which sets a maximum interest rate of 6% per annum.
Headnote:
CIVIL PROCEDURE CODE - SECTION 34 - INTEREST - AWARD OF FUTURE INTEREST - COURT'S DISCRETION - SECTION 152 - AMENDMENT OF DECREE - ERROR APPARENT ON THE FACE OF THE RECORD - REVISION - JURISDICTION.
Fact of the Case:
The plaintiff filed a suit for recovery of Rs. 1,23,583.43 with interest at 14% from the date of suit to the date of realization. The trial court decreed the suit as prayed for. The defendant filed an interlocutory application under sections 152 and 153 of the Code of Civil Procedure (CPC) to amend the judgment and decree by reducing the interest rate from 14% to 6%. The trial court dismissed the application.
Finding of the Court:
The High Court allowed the revision petition and set aside the order of the trial court. The court held that the trial court erred in awarding future interest at 14% as section 34 of the CPC limits the interest rate to 6% per annum. The court also held that the error was apparent on the face of the record and could be corrected under section 152 of the CPC.
Issues: 1. Whether the trial court erred in awarding future interest at 14% when the statutory limit under section 34 of the CPC is 6% per annum? 2. Whether the error in the decree was an apparent error that could be corrected under section 152 of the CPC?
Ratio Decidendi: 1. Section 34 of the CPC limits the interest rate that can be awarded by a court to 6% per annum. This limit applies to both pre-decree and post-decree interest. 2. An error apparent on the face of the record is an error that is obvious and does not require any investigation or evidence to be established. Such an error can be corrected by the court under section 152 of the CPC.
Final Decision: The High Court allowed the revision petition and set aside the order of the trial court. The court held that the trial court erred in awarding future interest at 14% as section 34 of the CPC limits the interest rate to 6% per annum. The court also held that the error was apparent on the face of the record and could be corrected under section 152 of the CPC.
( 2 ) FURTHER, under Order 20, rule 6 A, Civil procedure Cole, the last portion of the judgment shall state in precise terms the relief which is granted under judgment. In the judgment it is merely mentioned as "the suit is decreed as prayed for with costs. " Though in the plaint, the prayer, is for awarding future interest at 14 per cent it was not competent for the Court to have decreed the suit awarding interest exceeding 6 per cent.
( 3 ) THE Counsel for the respondent contends that the plaintiff has prayed for award of 14 per cent interest per annum from the date of decree to the date of realisation and that was not disputed in the written statement. So no finding whatsoever was given and the lower Court decreed the suit as prayed for. Hence it is not a case where the Court had no jurisdiction. It may be at the most a case of involving question of law for which the remedy was to prefer an appeal against. The remedy sought for under sections 152 and 153, Civil Procedure code, is not available to the petitioner herein inasmuch as it does not involve any arithmetical or clerical mistake. The learned counsel for the respondent relied on the following decisions: S. Barrow v. State of uttar Pradesh and another and Gwalior northern India Transport Co. Ltd. , and another v. Dinkar Durga Shanker Joshi and another. The learned Counsel for the petitioner in reply argued that awarding of interest cannot be a