JUDGMENT - Dr. B.P. SARAF, J.:---This case has been referred to the Full Bench at the instance of brother Dhanuka. J. The controversy that arose for determination relates to interpretation of the expression "principal sum adjudged" as used in section 34 of the Code of Civil Procedure, 1908 (hereinafter "C.P.C.").

2. The suit in relation to which this controversy arose was filed by the Union Bank of India for recovery of a sum of Rs. 5,55,259.35 with further interest thereon at the rate of 16.5% per annum with quarterly rests from the date of the suit till payment. The plaintiffs relied on various documents in support of its contention that the defendant bad agreed to pay the amount of interest to it with quarterly rests. An ex-parte decree against the defendant was prayed for with interest pendents lite and post-decretal. The controversy arose as to the amount on which pendente lite or post-decretal interest can be granted. The amount of Rs. 5,55,259-35 for which the suit had been filed was admittedly inclusive of interest due till the filing of the suit. Section 34 of C.P.C. empowers the Court to award pendente lite and post-decretal interest at such rate as it may deem reasonable

Click Here to Read the rest of this document