C.K. SASANKAN versus THE DHANALAKSHMI BANK LTD.

C.K. SASANKAN versus THE DHANALAKSHMI BANK LTD.

Section 34 CPC requires that interest be awarded at a reasonable rate and on the principal amount. The grant of 25% and 19.4% as pendente lite and future interest was excessive; 9% is just and reasonable on the facts.

Parties
Appellant: C.K. Sasankan; Respondent: The Dhanalakshmi Bank Ltd.
Jurisdiction
India
Judgment Date
27 February 2009
Procedural Posture
Civil Appeal / Appeal From High Court Judgment Upholding Orders of DRAT and DRT
Outcome
Appeal partly allowed
Legal Topics
Interest on Decrees, Rate of Interest, Section 34 CPC, Debt Recovery
Civil Procedure Banking Law Interest on Decrees Rate of Interest Section 34 CPC Debt Recovery

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Parties

C.K. Sasankan

Appellant

The Dhanalakshmi Bank Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment Upholding Orders of DRAT and DRT

Legal Issues

  1. 1 Whether grant of interest at 25% from the date of filing of suit till the date of judgment and at 19.4% thereafter till realization is exorbitant and contrary to Section 34 of the Code of Civil Procedure

Ratio Decidendi

Section 34 CPC requires that interest be awarded at a reasonable rate and on the principal amount. The grant of 25% and 19.4% as pendente lite and future interest was excessive; 9% is just and reasonable on the facts.

Court Disposition

Appeal partly allowed

Orders

  • Pendente lite and future interest to be paid at 9% instead of 25% and 19.4%.