Searching Case Laws & Precedent on Legal Query.....!
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Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Discretion of Court to Award Interest - The use of the word may in Section 34 of the Civil Procedure Code (CPC) grants courts discretion to award interest, specify rates, or decline to do so. Courts can award interest from the date of filing the suit, from the date of decree, or other relevant periods, depending on the circumstances. The rate of interest is also subject to judicial discretion, usually considering what is reasonable, contractual, or statutory. ["2023 0 Supreme(Guj) 363"], ["2025 0 Supreme(P&H) 669"], ["2024 0 Supreme(All) 2240"], ["2024 0 Supreme(Guj) 1123"], ["2024 0 Supreme(Mad) 2231"], ["2023 0 Supreme(AP) 1181"], ["2023 0 Supreme(Del) 3139"]
Main Points on Interest in Money Recovery Suits:
In certain cases, courts have reduced or declined interest awards, citing misinterpretation of contractual terms or the absence of explicit interest clauses. ["2025 0 Supreme(Bom) 499"], ["2023 0 Supreme(Del) 3139"]
Analysis and Conclusion:
References:- ["2023 0 Supreme(Guj) 363"]- ["2025 0 Supreme(P&H) 669"]- ["2024 0 Supreme(All) 2240"]- ["2023 0 Supreme(P&H) 3021"]- ["2024 0 Supreme(All) 2240"]- ["2025 0 Supreme(Bom) 499"]- ["2023 0 Supreme(Del) 3139"]- ["2025 Supreme(US)(ca6) 164"]- ["2025 7 Supreme 258"]- ["2023 Supreme(SRI)(SC) 20700"]
In the world of , particularly , one common question arises: 18% interest may be awarded in the suit of recovery of money. Borrowers and lenders alike want to know if courts can impose high interest rates like 18% and under what conditions. This blog post dives deep into the legal framework, , and real-world applications to provide clarity.
While courts may award interest, including rates up to 18% in certain scenarios, it's not automatic. It hinges on statutes, contracts, and case-specific facts. This is general information based on established laws and precedents—consult a legal professional for advice tailored to your situation. [
#MoneyRecoverySuit, #InterestAward, #LegalInsights
It is well settled that the use of the word 'may' in Section 34 confers a discretion on the Court to award or not to award interest or to award interest at such rate as it deems fit. ... b) The use of the word 'may' in Section 34 confers a discretion on the Court to award or not to award interest or to award interest at such rate as it deems fit. ... Finally, it is submitted by ....
The above provision empowers the court to grant interest at three different stages of a money decree viz., (i) the court may award interest on the principal sum claimed at a rate it deems reasonable, for the period before the suit was filed. ... Otherwise such award of interest at a lower rate may be challenged as arbitrary. ... Such interest is generally governed by agreements between the parties; (ii) The court #....
It was held to the following effect:- "There can be three periods for which in the case of a decree for payment of money, interest may be allowed. The first period is the one which is prior to the date of the suit. ... Interest (1) where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal sum adjudged, from the date of the ....
Interest (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree order interest to be paid on the principal sum adjudged, from the date of the suit to the date of decree at a rate not exceeding twelve percent. per annum, in addition to any interest adjudged on such ... Section 34 of the CPC provides that where the decree is for payment of money, the court may order interest at such rate as the c....
The above provision empowers the court to grant interest at three different stages of a money decree viz., (i) the court may award interest on the principal sum claimed at a rate it deems reasonable, for the period before the suit was filed. ... Such interest is gener- ally governed by agreements between the parties; (ii) The court may award interest on the principal amount from the date of filing the sui....
Clause (a) of sub-section (7) provides that where an award is made for the payment of money, the Arbitral Tribunal may include interest in the sum for which the award is made. ... In Section 31(7), this particular amount of money may include interest from the date of cause of action to the date of the award. ……… 10. ... The award holder has prayed for the recovery of INR 31,50,607/- (Thirty-One L....
As the transaction in question is a commercial transaction and there are no extenuating circumstances pleaded by the defendants, we are of the view that it would be just and appropriate to award interest from the date of the suit till the date of the decree at 10%. ... The claim in the suit relates to debt because the debt as defined under clause 2(c) of the Act means "any liability for an ascertained sum of money and includes a debt payable in kind, but does not include a judgment debt." ... The appeal....
Recovery of Money Due from an Employer.- (1)..... ... It is held in para-18 of the said judgment asunder : 18. Thus, in view of the above, I find that Labour Court was completely misled in granting interest @ 18% for the delayed payment. ... Power of Court to allow interest. — (I) 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 p....
and that no suit for recovery has ever been filed by petitioner against the respondent Bank after 17.10.2016. ... The liability was thus fastened upon the petitioner company to pay the interest component ordered at the rate of 15% per annum alongwith the expenses, however, it was granted liberty to seek the interest that may have accrued upon the subscription money deposited with the respective banks. ... Refund of the subscription money alongwith interest#H....
Pai, the learned Member Industrial Court did not properly appreciate the entitlement of the applicant Nos. 2 to 6 for interest on due amount and went on to award interest at an exorbitant rate of 10% p.a. ... the workman, his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate Government for the recovery of the money due to him, and if the appropriate Government is satisfied that any money is....
1. This suit is for recovery of money of Rs.1,16,38,850/- along with interest pendentlite @ 18% per annum.
However, in spite of repeated demands, the defendants failed to pay the money. Hence, the suit was filed for recovery of money of Rs.3,50,000/- with future interest @18%.
The award itself provided for an alternative right of 15 lacs with interest at 18% if the decree holder chose to settle recovery of money only. The decree holder has expressed his preference and sought for execution of the decree only for execution of sale deed by respondent Nos.
On the other hand, in retard to the post-award period, interest is payable as per the discretion of the Arbitral Tribunal and in the absence of exercise of such discretion, at a mandatory statutory rate of 18% per annum.” This Court further observed in para 24.6 as under: “.........but if the award is silent in regard to the interest from the date of award, or does not specify the rate of interest from the date of award, then the party in whose favour an award for money has been made, will be entitled to interest at 18% per annum from the date of award. Even if the pre-awar....
It is not in dispute that the pleadings would disclose that the amount borrowed was not towards a commercial transaction but it was a hand loan simplicitor inasmuch as both the plaintiff and the defendant appear to be close friends. Hence, I am of the view that awarding of interest at the rate of 18% from the date of suit till recovery would be on the higher side.
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