Future interest on money decrees should be granted unless strong reasons exist to deny it, even in the absence of an appeal against the decree.

O R D E R

Challenging the dismissal of the application filed by the revision petitioner under section 152 of Code of Civil Procedure filed in I.A.No.05 of 2022 in O.S.No.5925 of 2019 on the file of the I Assistant Judge, City Civil Court, Chennai for awarding future interest in the judgment and decree in O.S.No.4925 of 2019, this Civil Revision Petition has been filed .

2. Brief background of the case is as follows :

The revision petitioner has filed a suit for recovery of a sum of Rs.5 lakhs with interest at the rate of 18% per annum from the date of the promissory note dated 12.09.2018. The suit has been decreed for a sum of Rs.5,00,000/- towards principal and Rs.75,000/- towards interest from 12.09.2010 till the date of judgment. While decreeing the suit, the future interest has not been awarded. Therefore, an application in I.A.No.5 of 2022 has been filed under section152 of Code of Procedure for grant of future interest. The said application has been dismissed on the ground that there is no typographical or arithmetical error to amend the decree. Challenging the same, the present Civil Revision Petition has been filed.

3. The learned Senior Counsel appearing for the petitioner contended that grant of future interest on the principal in a suit for recovery of money is a rule. Hence, prayed for awarding future interest. He further contended that no appeal has been filed as against the decree and judgment that will note preclude the Court to exercise its discretion to award interest under section 34 of Code of Civil Procedure .

4. Whereas, it is the contention of the learned counsel appearing for the respondent that when the Court has not awarded future interest and the decree is silent with regard to the payment of future interest particularly from the date of decree till the date of payment, it has to be held that the Court has refused to grant such interest as per Sub Clause 2 of Section 34 of Code of Civil Procedure . Hence, according to him, the Order impugned does not require any interference.

5. I have perused entire materials. The point that arises for consideration is that in the absence of any appeal as against the decree and judgment, whether the Court can grant future interest by amending the decree?

6. It is relevant to note that as far as the decree for payment of money, the contractual interest till the date of decree will be normally awarded by the Court. As far as the future interest is concerned, the rule is that the Court will normally award interest not exceeding 6% per annum. Though Section 3 4 [1] of Code of Civil Procedure provides that when the decree is silent about future interest, the Court shall be deemed to have refused such an interest. As far as [a] of of the Interest Act , the Court can award interest to person entitled to debt and the interest shall not exceed the current rate of interest as per the . However, the fact remains that the will not affect the provisions of 4 of .

7. In this regard, this Court in The Chairman, Tamil Nadu Electricity Board and another Vs. R.Bakkiavathy and others reported in 2009-5-L.W. 647 has held that the principle applicable to future interest under section 34 [2] of Code of Procedure cannot be applied with full vigour to the payment of interest between the date of suit to the date of decree and has held as follows :

“34. In Jagdish Rai & Bros. v. Union of India, (1999) 3 SCC 257 , the issue before the Supreme Court was regarding the payment of interest in the absence of an appeal against non-grant of interest by the aggrieved party. The Supreme Court observed that award of interest under Section 34 is a matter of procedure and ought to be granted in