Phool Singh vs Piara Lal

G.C. Garg, J.—Phool Singh borrowed some money from Piara Lal and agreed to pay interest @ 1.56% per month. The amount was not repaid. Ultimately, Piara Lal filed a suit against Phool Singh for the recovery of Rs. 25,235/- i.e. Rs. 17,000/- as principal amount and Rs. 8,235/- as interest. This suit was decreed by the trial Court in the following terms:-

"The suit of the plaintiff for the recovery of Rs. 25,235/- inclusive of interest succeeds and is decreed with costs. The plaintiff shall also be entitled for future interest at the rate of 6% per annum from the date of institution of the suit till the realisation of the decretal amount".

The decretal amount was not paid and this prompted the plaintiff-decree holder to take out execution. The judgment debtor raised a number of objections by filing an objection petition. The Executing Court, however, by order dated 12.5.1993 dismissed the objection-petition being devoid of merit. Hence, this revision.

Learned counsel for the petitioner submitted that the judgment-debtor is liable to pay interest not on the entire amount as decreed by the trial Court but only on the principal amount adjudged.

After hearing learned counsel for the parties, I am of the opinion that the contention of learned counsel for the petitioner has merit. The plaintiff filed a suit for the recovery of Rs. 17,000/- as principal amount besides a sum of Rs. 8,235/- as interest. It was in this situation the trial Court decreed the suit for the recovery of Rs. 25,235/- with interest @ 6% per annum from the date of institution of the suit till realisation. Section 34 of the CPC provides that where a decree for the payment of money is passed, the Court may in the decree order payment of interest at such a rate as the court may deem reasonable on the principal amount adjudged from the date of the suit to the date of decree in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit. In the present case, the plaintiff filed a suit for a sum of Rs. 17,000/- in addition to Rs. 8,235/- on account of interest on the principal amount prior to the date of filing of the suit and the plaintiff also claimed future interest. The suit has been decreed not only for the principal amount but also for the interest prior to the filing of the suit. The decree, though is silent while granting interest at the rate of 6% from the date of institution of the suit till the date of decree by specifying as to on what account this interest is payable. However, after going through the decree and keeping in view the provisions of Section 34 of C.P.C. I am clearly of the opinion that the interest is payable @ 6% as granted by the trial Court on the principal amount adjudged i.e. Rs. 17,000/-. The Executing Court will thus work out the interest on the principal amount while executing the decree. With the above clarification, this revision petition stands disposed of. No costs.

Since, proceedings were stayed by this Court, parties through their counsel are directed to appear before the trial Court on 12.10.1998.