The court established that under Section 3(1) of the Interest Act, the plaintiff was entitled to interest at the current rate for the specified period, and determined the appropriate rate of interest based on the legal provisions.

( 1 ) AT the stage of admission respondents are served. Respondent No. 2-contesting respondent is also represented through a counsel. As the appeal can be disposed of on a short point even at the admission stage, it is admitted and taken up for final hearing itself.

( 2 ) THE only point that arises for consideration is : whether the trial Court is justified in law in not awarding interest on the suit amount for the period from 28-10-1984 to 8-10-1985.

( 3 ) FACTS necessary for the purpose of deciding this question are no more in dispute.

( 4 ) THE plaintiff-appellant advanced in all a sum of Rs. 55,000/-, the receipt of which was acknowledged by the defendants under the receipts produced as per Exts. P-1 to P-3. The trial Court refused to award interest for the aforesaid period even though the plaintiff-appellant claimed interest as per registered notice Ext. P-4 on the ground that Exts. P-1 to P-3 did not provide for payment of interest. In other words, according to the learned trial Judge there was no agreement between the parties regarding payment of interest. It is true and it is also not disputed before us that there was no agreement between the parties regarding interest payable on the amount of Rs. 55,000. However, the plaintiff-appellant issued a registered notice as per Ext. P-4 dated 23-10-1984 which was served upon the first defendant-1st respondent on 28-10-1984 demanding payment of money advanced and also interest at the rate of 18% per annum from the date the money was advanced as per Exs. P-1 to P-3. Therefore, it is contended on behalf of the plaintiff that the plaintiff at least was entitled to interest from 28-10-1984 at the current rate as per the provisions contained in Section 3 of the Interest Act.

( 5 ) HOWEVER, it is contended by the learned Counsel for the 2nd respondent that the provisions of Section 3 of the Interest Act are not attracted to the case inasmuch as Exts. P1 to P-3 are mere receipts evidencing the receipt of the money by the 2nd respondent from the appellant-plaintiff, and they do not contain any recital as to when the amount has to be paid. Therefore, the very requirement of Sub-Section (1) of Section 3 is not satisfied. Learned Counsel for the 2nd respondent, has placed reliance on a decision of the Supreme Court in Thawardas Pherumal v. Union of India, AIR 1955 SC 468.

( 6 ) SECTION 3 (1) of the Interest Act, 1978 reads thus :"in any proceedings for the recovery of any debt or damages or in any proceedings in which a claim for interest in respect of any debt or damages already paid is made, the Court may, if it thinks fit, allow interest to the person entitled to the debt or damages or to the person making such claim, as the case may be, at a rate not exceeding the current rate of interest, for the whole or part of the following period, this to say, - (a) if the proceedings relate to a debt payable by virtue of a written instrument at a certain time, then, from the date when the debt is payable to the date of institution of the proceedings; (b) if the proceedings do not relate to any such debt, then, from the date mentioned in this regard in a written notice given by the person entitled or the person making the claim to the person liable that interest will be claimed, to the date of institution of the proceedings : provided that where the amount of the debt or damages has been repaid before the institution of the proceedings, interest shall not be allowed under this Section for the period after such payment. "in order to attract Section 3 (1) of the Interest Act, it is sufficient for the plaintiff if he either satisfies clause (a) or clause (b) of Section 3 (1) of the Interest Act. Both the clauses are not required to be satisfied. If clause (a) is satisfied, he would be entitled to interest from the date the debt became payable. If clause (b) is satisfied, then the interest becomes payable from the date the written notice is served claiming or demanding interest. 6. 1