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Wednesday, March 10, 2010

future interest i.e. from date of passing decree, until realization of amount, could only be granted @ 6% per annum on principal amount

2010(1) LAW HERALD (P&H) 209
IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Sham Sunder
R.S.A. No. 3197 of 2005
Hari Ram & Ors.
v.
Shashi Jain & Ors.
{Decided on 04/08/2009}
For the Appellant: Mr. Malkeet Singh, Advocate.
For the Respondent: Mr. R.M. Singh, Advocate.
Civil Procedure Code, 1908, S.34--Agreement to sell--Specific Performance--Refund of earnest money--Interest--Suit for specific performance, in the alternative, for recovery of earnest money with interest--No doubt, amount of earnest money, was withheld improperly by defendant/appellant for a long period and had he paid the same, in time, plaintiff would have invested the same, in some business and thereby earned interest thereon--Court below were right in granting interest at rate of 12 % per annum, from date of execution of agreement, till passing of decree--However, as per S.34 CPC, future interest i.e. from date of passing decree, until realization of amount, could only be granted @ 6% per annum on principal amount, as the transaction between parties, was not commercial--Courts below, thus illegally held, that plaintiff/respondent was entitled to future interest 12% per annum from date of passing decree until realization of amount--Judgments and decrees of Courts below, to this extent being illegal liable to be set aside, by modifying the same.