The court may award interest at a reasonable rate on the principal sum adjudged, distinguishing it from the original principal sum advanced, and may consider the initial interest charged in determining the interest rate.

( 1 ) THE list has already been revised but no one is present for the appellant. The appellant has also failed to supply the paper book. We, therefore, dismiss this appeal in default.

( 2 ) THERE is also a cross-objection filed by the plaintiff-respondent claiming additional rate of interest and also interest on a higher amount. The requisite court-fee has been paid on the cross-objection. Having heard Sri K. L. Grover, learned Counsel for the respondent, we find that there is merit in the submission made on his behalf. The contention of the respondent is that under S. 34 of the Code of Civil Procedure, interest at a reasonable rate can be awarded by the Court on the principal sum adjudged and in addition thereto the interest on the principal sum of money at a reasonable rate prior to the date of the institution of the suit with further interest not exceeding 6% per annum as the Court may deem reasonable.

( 3 ) THE respondents argument, therefore, is two-fold. Firstly it is submitted that the principal sum adjudged by the Court is Rs. 41,457. 05 although the original principal sum advanced to the appellant was Rupees 13,500/ -. The Court, therefore, was not justified in awarding interest only on a sum of Rs. 13,500/- in terms of Sec. 34 of the Code. The expression principal sum adjudged is to be distinguished from principal sum advanced. The principal sum adjudged in ordinary parlance means the amount which the Court determines after adjudicating upon the rights of the parties in a suit. The final amount which has been adjudged by the Court in this case while deciding Issue No. 8 is Rupees 41,457. 05 and, therefore, it must be deemed to be the principal amount adjudged by the Court. The interest, therefore, accrued on this amount and not on the original amount advanced to the appellant.

( 4 ) THE second argument is that only three per cent has been awarded although initially the loan had been advanced at 24% interest and Section 34 also permits grant of interest at the rate of 6% per annum and, therefore, the Court was not justified in awarding only 3% interest. It is true that the Court has right to award interest up to 6% on the principal sum adjudged but at the same time it cannot be said that the Court should award interest at that rate in every case. In this case the plaintiff has already charged a very heavy interest on the initial amount of loan. In these circumstances, if the Court has thought it proper to award only 3% interest in future, the same cannot be said to be unreasonable.

( 5 ) IN view of what has been said above, the cross-objection is accepted in part. The interest at the rate of 3% will now be calculated on the sum of Rs. 41,457,05 as mentioned in the operative part of the decree and the decree shall stand modified accordingly. There will be no order as to costs. Appeal dismissed.

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