State of Punjab etc. v. Mohan Singh etc.
Case brief
What is this about?
High Court held that in absence of agreement authorizing charging of interest, pre-suit interest cannot be capitalized. However, future interest at 6% per annum on the principal adjudged including pre-suit interest can be awarded to avoid interest on interest contradiction.
What did the court decide?
Judgment and decree modified to grant future interest @ 6% from date of decree till realization.
What the court decided
RSA No. 344 of 1992
-1-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RSA No. 344 of 1992 Date of decision: 25.2.2012
Punjab State and another
…..Appellants
Vs.
Mohan Singh and another
........Respondents
CORAM: HON’BLE MR. JUSTICE HEMANT GUPTA
Present: Mr. Munish Kumar, AAG, Punjab for appellants.
Mr. Rajbir Wasu, Advocate for respondents.
Hemant Gupta, J.
Issues for consideration
3 issues framed by the court
Whether plaintiff is entitled to interest on the amount of pre-suit interest at 6% or 12%?
Whether proviso to Section 34 of CPC applies when there is no commercial transaction or contract regarding interest
Whether future interest can be awarded on pre-suit interest amount
Parties & counsel
- appellant
Punjab State and another
- respondent
Mohan Singh and another
Coram
Hemant Gupta
Case details
As recorded by the court registry
- Court
- Punjab & Haryana HC
- Decided on
- · February
- Registered
- Case no.
- RSA/344/1992
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