Section 34 CPC – Award Of Pendente Lite Interest A Discretionary Remedy: Supreme Court

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Section 34 CPC – Award Of ‘Pendente Lite’ Interest A Discretionary Remedy

Case: Small Industries Development Bank of India vs M/s Sibco Investment Pvt Ltd

Coram: Justice Hrishikesh Roy and Justice Subhash Reddy

Case No.: Civil Appeal No. 8 Of 2022

Court observation: “The respondent did pray for pendente lite interest in the trial court but neither did the trial court frame any issue in this regard, nor were any arguments recorded. This shows that such claim was not pressed by the respondent. Further, no ground is urged in the appeal memo, that such an issue ought to have been framed. Hence, it’s clear that the respondent is not serious on its claim for pendente lite interest.”

“As per S.34 of the Code of Civil Procedure, award of an interest is a discretionary exercise, steeped in equitable considerations. Interest is payable for different purposes such as compensatory, penal, etc. but the conditions before us are different. Firstly, the appellant was justified in withholding payment as per RBI’s direction, secondly, the defendant did not derive any undue benefit from their act and thirdly, due payment was promptly made to the respondents upon settlement of rights by the court.”

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