• Civil Procedure Code, 1908 (V of 1908) S.  34 - Does not deal with the circumstance for interest prior to the suit, which is generally regulated by the  contract. (175) P.L.R.
  • Civil Procedure Code, 1908 (V of 1908) S.  34 - Scope - Section 34 of Code of Civil Procedure provides discretionary powers to the Court to award interest at such rate as the Court deem reasonable to the principal sum - In this case, both the Courts have found the interest claimed @ 2% per month as exorbitant and exercised their discretion while allowing interest on principal amount @ 6% per annum - The transaction between the parties was not a commercial transaction and plaintiff is not a money lender - The interest allowed on loan amount @ 6% per annum, as such, is reasonable.  (180) P.L.R.
  • Civil Procedure Code, 1908 (V of 1908) S.  34 - Where the liability has arisen out of the commercial transaction, the rate of interest may exceed 6% per annum and contractual rate of interest can be awarded. (173) P.L.R.