The State of Punjab and Another vs Hazara Singh

S.S. Sodhi, J.—Where the decree under execution makes no provision for award of interest, is the executing Court empowered to grant it? Herein lies the controversy raised.

Respondent-Hazara Singh obtained a decree for Rs. 29,436/- an amount held to be payable to him by the State of Punjab as pension and death-cum-retirement gratuity. No mention was however made of any interest payable thereon either in the judgment or in the decree. It was during executing that the respondet decree-holder claimed interest on the arrears of pension from the date when it became due to the date of its payment. The executing Court, by its impugned order of July 21, 1989 held the Respondent entitled to interest at the rate of 12 per cent per annum on the principal amount from the date when it became due till its realization.

The order of the executing Court awarding interest to the decree-holder cannot indeed be sustained in view of the judgment of the Supreme Court in State of Punjab and others Vs. Krishan Dayal Sharma, where, it was observed, "the executing Court is bound by the terms of the decree, it cannot add, alter the decree on its notion of fairness or justice. The right of the decree-holder to obtain relief is determined in accordance with the terms of the decree". It was accordingly held, "No doubt the Courts have power to award interest on the arrears of salary or pension or the other amount to which a Government servant is found entitled having regard to the facts and circumstances of the case, but that power cannot be exercised by the executing Court in the absence of any direction in the decree."

It follows, therefore, that in the absence of interest being allowed, in the judgment and decree, the executing Court cannot award interest on the decretal amount.

Since thus being the settled position of law, there can be no escape from the conclusion that the trial Court fell in error in awarding costs in execution of the decree. The impugned order of the trial Court is accordingly hereby set aside and this revision petition is thus accepted. There will, however, be no order as to costs.