Civil Appeal No 2008 of 1969
From the Judgment and Order dated 7 4 1965 of the Rajasthan High Court in D B Civil Regular Appeal No 6753
section M Jain for the Appellant
B D Sharma Ramesh Chandra and B P Maheshwari for the Respondent
The Judgment of the Court was delivered by CHINNAPPA REDDY J
The State of Rajasthan defendant in Civil Suit No 9 of 1963 in the Court of the Senior Civil Judge Udaipur is the appellant in this appeal filed pursuant to a certificate granted under Article 1331 a of the Constitution of India as it stood prior to the 30th amendment
The plaintiff respondent took a building work on contract from the erstwhile Government of the State of Udaipur
He completed the work on 6th June 1950
Despite demands and notices issued by the plaintiff a considerable amount due to him remained unpaid
He therefore filed the suit out of which the appeal arises to recover a sum of Rs 31945811 together with interest at the rate of 12
The suit was contested by the State of Rajasthan
An interim decree for a sum of Rs 66517 was passed on 7th November 1955
After full trial a decree for Rs 167619 including the sum of Rs 66517 for which a preliminary decree had already been passed was passed on 11 6 195830 6 1958
The decree also awarded interest at the rate of 4 12 on the amount decreed from the date of suit till the date of realisation
The plaintiff and the defendant preferred appeals to the High Court of Rajasthan
The High Court reduced the decreetal amount by a sum of Rs 9991 
The High Court however held that the plaintiff was entitled to interest from 1st January 1951 and not merely from the date of suit
The High Court also enhanced the rate of interest pendente lite from 4 12 to 6
The High Court having varied the decree of the Trial Court the State of Rajasthan 8 sought and obtained a certificate under Article 1331a of the Constitution and has filed this appeal
The controversy in the High Court related primarily to i conveyance and lift charges ii alleged double benefit in regard to bond stones lintels and sills iii use of Jodhpur slabs and their high cost iv charge for C P Teak wood at the same rates as for Burma Teak
In regard to conveyance and lift charges the High Court pointed out that no question was raised in the Memorandum of grounds of appeal and there was therefore no justification for permitting the learned Counsel for the State to assail the finding of the Trial Court relating to those charges
We do not see any reason either why the learned Counsel should be permitted to agitate this question in this appeal
Regarding double charge for bond stone lintels and sills the complaint of the appellant was that while separate payment was being made for them they had also been included in the measurements of the walls in which they happened to be fixed
From the office circular issued by the Chief Engineer of the Public Works Department of the United State of Rajasthan on 12th July 1948 it appears that it was the practice uptill then to allow payment for bond stones lintels and sills separately without deducting their cubic contents from the general wall masonry
This had always been the practice and this was never objected to by the Accountant General
In view of the practice obtaining till then it could not be said that the contractor had wrongfully claimed double payment for bond stones lintels and sills
The use of Jodhpur slabs was not questioned in the written statement
All that was said was that the rate was high but at the trial there was no evidence worth the name as observed by the High Court to show that the charge was excessive
Again there was no objection to the use of CPTeak wood instead of Burma teak wood as the latter was not available
According to the letter of the Superintending Engineer dated 6th February 1950 where Burma teak wood was not available and C P Teak wood was used the rates specified for Burma teak wood should be taken for CP Teak wood
It could not therefore be said that the contractor had charged more than what he should for CP Teak wood
The last question which was argued before us by Shri Jain learned Counsel for the State of Rajasthan was that no interest should have been awarded for the period before the filing of the suit and that the rate of interest should not have been enhanced by the High Court for the period subsequent to the filing of the suit
It was 9 submitted that the Interest Act 1839 was not applicable as no sum A certain was payable and there was no demand for payment of interest
It was argued that what was demanded by the plaintiff was damages and not interest
It was also contended that the Trial Court having in exercise of its discretion awarded interest at the rate of 4 12  pendente lite the High Court ought not to have interfered with the discretion of the Trial Court
Reliance was placed upon the decision in Mahabir Prasad Rungta vs Durga Datt1 and Union of India vs A L Rallia Ram2
We are unable to agree with the submission of the learned Counsel for the appellant
Under the Interest Act 1839 upon all debts or sums certain payable at a certain time or otherwise the Court before which such debts or sums may be recovered may if it shall think fit allow interest to the creditor at a rate not exceeding the current rate of interest from the time when such debts or sums certain were payable if such debts or sums be payable by virtue of some written instrument at a certain time or if payable otherwise then D from the time when demand of payment shall have been made in writing so as such demand shall give notice to the debtor that interest will be claimed from the date of such demand until the term of payment provided that interest shall be payable in all cases in which it is now payable by law
The claim of the present plaintiff was not for the payment of any unliquidated damages or for the payment of any amount arising out of an inchoate or contingent obligation
It was for the payment of a sum which was ascertainable on a calculation made in accordance with the terms of the agreement
It was clearly a sum certain within the meaning of the Interest Act
In any case it would be a debt ie a sum of money which is now payable or will become payable in the future by reason of a present obligation
The further question for consideration is whether the plaintiff had made a demand of payment so as such demand shall give notice that interest will be claimed from the date of such demand until the term of payment
The plaintiff issued two notices to the defendant demanding payment
The first was on 21st December 1950 and the second was on 5th April 1953
There is no dispute that in the second notice of demand of payment of definite claim for interest had been made
In the first notice it was said by with holding payment of his bills absolutely the Government has put my client to enormous loss by way of interest also 
I intimate to you 11961 3 SCR 639
21964 3 SCR 164
2 196SCI79 10 through this notice that the said Shri Ramsingh claims a sum of Rs 250519 from the Rajasthan State as under 1
Unpaid bills for work done Rs 137177 2
lnterest on the above
11511 3    4   5    6  
Total Rs 250519 The learned counsel submitted that what was claimed by the plaintiff in this notice was damages and not interest and that too for the past without any indication that future interest was also being claimed
It is true that the plaintiff mentioned loss by way of interest suggesting that what he was claiming was compensation for the damage suffered by him
We are however not prepared to construe the notice so literally or technically
The mention of loss was only explanatory
The plaintiff was without any manner of doubt claiming interest as such
Nor are we impressed with the argument that there was no claim for future interest
In our opinion a claim for past interest would necessarily imply a claim for future interest vide Kuppuswami Pillai vs Madras Electric Tramway Co Ltd1 and Sita Ram  Ors
vs Mrs section Sullivan2
In Mahabir Prasad Rungta vs Durga Datt3 interest was disallow ed on the ground that the notice which was given did not specify the sum which was demanded and therefore the Interest Act did not apply
On the question whether interest could be awarded on grounds of equity it was held that what was claimed by Durga Datt was interest as damages and that it could not therefore be awarded
The suit itself was one for damages for breach of contract
We do not think that this case is of any assistance to the appellant
In Union of India vs A L Rallia Ram supra the Arbitrator had awarded interest by way of compensation since the party had to borrow a large amount of money from its banker to meet its obligation under the contract
The Supreme Court pointed out that interest could not be awarded by way of damages
The Supreme Court also noticed that an Arbitrator was not a Court within the meaning of the Interest Act
No question arose before the Supreme Court whether interest could not be awarded under the Interest Act merely because the notice demanding payment 1 ILR 2 3  11 mentioned that the plaintiff had suffered loss of interest also
In our view the condition prescribed by the Interest Act that such demand shall give notice to the debtor that interest shall be claimed is fulfilled if interest is claimed notwithstanding the fact that the notice of demand explains that loss by way of loss of interest has been suffered
Ta take any other view would be to be over technical in the construction of pleadings including notices preceeding the action
We must notice here an argument advanced by the learned counsel for the appellant that the contract prohibited the award of interest
He relied upon the following sentence occurring in paragraph 16 of the Contract dated 11th May 1947 Neither the earnest money deposit nor the with held amount shall bear any interest
This sentence far from supporting the case of the appellant appears to support the case of the plaintiff
The reference to the with held amounts is to the amounts represening five per cent of the running bills which are required to be with held at the time of payment of the running bills
The provision that the contractor is not entitled to interest on these with held amounts appears to imply that interest is claimable on other amounts due to the contractor
While awarding interest pendente lite the Trial Court adopted the rate of 4   but the Trial Court gave no reasons for so doing
The High Court considered the matter in some detail and having regard to the various continuous defaults committed by the defendant and its Officers the High Court enhanced the rate of interest to 6
The High Court was justified in doing sol and we see no reason to interfere with the discretion exercised by the High Court
In the result the appeal is dismissed with costs
NVK Appeal dismissed


Summary:
The Interest Act 1839 32 of 1839 empowers the Court to allow interest to the plaintiff if the amount claimed is a sum certain which is payable at a certain time by virtue of a written instrument at la rate not exceeding the current rate of interest from the time when such amounts were payable and if the amount is payable otherwise then from the time when the demand of payment shall have been made in writing
As the amounts due in respect of a building works contract remained unpaid despite demands and notices the respondent plaintiff filed a suit for its recovery together with interest
Decreeing the suit the trial court award ed interest at 4 12 per cent
But in appeal the High Court enhanced the rate of interest pendente life from 4 12 per cent to 6 per cent
In the further appeal to this Court it was contended that the Interest Act 1839 was not applicable as no sum certain was payable and there was no demand for payment of interest
Dismissing the appeal  HELD 1
The claim was for a sum certain within the meaning of the Act
9F The claim was ascertainable on a calculation made in terms of the agreement and was therefore a sum certain within the meaning of the Act
It is a sum of money which is now playable or will become payable in the future by reason of a present obligation and in any case it was not for the payment of any unliquidated damages or for the payment of any amount arising out of an inchoate obligation
9E F 2
The respondent issued two notices
In the second notice a definite claim of interest had been made by them
The term loss by way of interest mentioned in the first notice suggested that what was being claimed was compensation for the damages suffered by them
The notice should not be construed literally or technically
The mention of loss was only explanatory
Without any manner of doubt the respondents were claiming interest as such
9G 10D 3
Nor again can it be said that there was no claim for future interest
A claim for past interest would necessarily imply a claim for future interest
10E 7 Kuppusami Pillai vs Madras Electric Tramway Co Ltd ILR  Sita Ram  Ors
vs Mrs section Sullivan 1901 2 Punjab Law Reporter 464 referred to
Mahabir Prashad Rungta vs Durga Datt  and Union of India vs A L Rallia Ram   distinguished
Having regard to the various continuous defaults committed by the appellant and its officers the High court was justified in enhancing the rate of interest to 6 per cent