The court has the discretion to award interest at a reasonable rate on the principal sum adjudged in a money decree, in accordance with Section 34 of the Code of Civil Procedure.

1. THIS appeal is against the judgment and decree of the learned 1st Additional District Judge Bokaro passed in Money Appeal No. 3 of 2003, whereby learned Lower Appellate Court has set aside the judgment and decree of the learned Sub Judge-I, Bokaro passed in Money Suit No. 10 of 1992.

2. THE defendant is the appellant in this second appeal. The plaintiff had filed Money Suit No. 10 of 1992 for a decree for realization of a sum of Rs. 65294/- from the defendant.

3. PLAINTIFF's case was that he had given friendly loan of Rs. 47,200/- to the defendant, as he was in dire need of money for establishing business of wholesale tea leaves for his son. The plaintiff had advanced the said friendly loan through account payee cheque on 18th May, 1990. The (defendant had assured to return the amount within a month. The cheque given by the plaintiff was encashed by the defendant and the money was utilized. The defendant, however, did not keep his promise and failed to repay the loan amount. The plaintiff had, thereafter, served a legal notice on 7th August. 1990, but even thereafter the amount was not paid. The plaintiff, thereafter, filed the said suit for realization of the said amount with interest.

4. THE defendant had contested the suit, denying the plaintiff's claim. It was stated that the plaintiff has no money lending licence and is not entitled lo file suit for recovery of the amount. THE suit is filed for oblique purpose. THE defendant claimed that the plaintiff himself had taken Rs. 52,200/- from him for purchasing a piece of land from one Smt. Nihur Bala Paul. THE plaintiff returned that money by giving a cheque of Rs. 47,200/-and Rs. 5,000/- in cash. He totally negated the plaintiffs case of giving him Rs. 47,200/-.

Learned Trial Court, on conclusion of the trial, dismissed the plaintiff's suit. It was, inter alia, held that the plaintiff had no money lending licence. He failed to establish that he had given loan to the defendant. The plaintiff has also claimed interest and damages for which there was no agreement.

5. AGGRIEVED by the said decree of the Trial Court, the plaintiff preferred appeal before the District Judge, Bokaro, being Money Appeal No. 3 of 2003 The said appeal was finally heard and decided by the 1st Additional District Judge, Bokaro by the impugned judgment and decree.

6. LEARNED Lower Appellate Court thoroughly discussed and appraised the facts and evidences on record and came to the finding that the plaintiff and the defendant were in friendly term since long. No money lending licence was necessary to advance friendly loan, particularly when there was a single and isolated transaction without any motive for earning interest. It was not covered by the provisions of Money Lending Act. The plaintiff established his case by adducing cogent and satisfactory evidences. He also considered the plaintiff's claim of interest in accordance with Section 34 of Code of Civil Procedure, which provides for granting interest in such cases at the just and reasonable rate on the decreed principal amount together with future interest at the rate of 6% per annum from the date of decree. He decided almost all the issues in favour of the plaintiff and set aside the judgment and decree of the learned Trial Court. LEARNED Lower Appellate Court decreed the plaintiff's suit and also granted interest in accordance with the provision of Section 34 of Code of Civil Procedure.

Mr. Amar Kumar Sinha, learned counsel, appearing on behalf of the appellant, submitted that the learned Lower Appellate Court has committed serious error of law in reversing the finding of the learned Trial Court, particularly the finding recorded on Issue No. 3, as also in awarding interest on the decreed amount without any such agreement between the parties. It has been submitted that the learned Lower Appellate Court has awarded interest @ 12% per annum from the date of filing of the suit to the date of the decree and interest @ 6% per annum on the decr