IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CR No. 1157 of 2010 Date of decision:- 20.8.2010 Lal Chand ......petitioner vs. Harphool Singh ......respondent CORAM:- HON'BLE MR. JUSTICE HEMANT GUPTA Present: - Mr. Sanjay Mittal, Advocate for the petitioner. HEMANT GUPTA, J (ORAL) Defendant-petitioner is in revision aggrieved against the judgment and decree passed by learned trial Court on 26.7.2008, granting a decree for recovery of Rs. 24,000/- along with pendent lite and future interest @ 2% per month from the date of filing of the suit till its realization. Such decree sheet was affirmed as a whole on 9.10.2009. The only argument raised by learned counsel for the petitioner is that the interest @ 2% per month is highly excessive and therefore, in a suit for recovery on the basis of pronote, such rate of interest could not have been granted. The argument raised by learned counsel for the petitioner is meritorious but if the notice is given to the respondent, he shall incur more expenses than the consequence of modification the decree with out notice to the said respondent. In view of the said fact, I proceed to decide the revision petition without notice to the respondent. Section 34 of the Code of Civil Procedure empowers the Court to grant interest on the principal sum adjudged from the date of suit to the date of decree in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit. However, from the date of decree, the interest contemplated 6 % but in relation to the commercial transaction, the rate of interest can exceed 6% but not exceeding the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalized bank in relation to commercial transactions. Considering the aforesaid provisions, the Supreme Court in Mahesh Chandra Bansal vs. Krishna Swaroop Singhal and others, (1997) 10 Supreme Court Cases, 681 has found that the rate of interest @ 12 % is reasonable rate of interest for the entire period including the period, the suit is pending as against the contractual rate of 19.5% per annum. However, the Court has granted 6% interest from the date of decree till its realization. In the case of Nand Lal vs. Maya Devi & ors, (2002) 10, Supreme Court Cases, 113, the Court has found the award of interest @ 18% per annum for pre-suit period as excessive. The Court granted 12% interest per annum till the date of decree including the pre-suit interest but granted interest @ 6% from the date of decree. Learned Single Judge of this Court, in a judgment reported as Balvinder Singh vs. M/s Basaikhi Ram Saini Ram (2008) 2, RCR (Civil) 467 has taken the same view and found interest @ 18.72/- as excessive and the Court granted 12% as rate of interest per annum for the pre suit and pendente lite but granted future interest @ 6% per annum. In view of the above, the grant of interest @ 24% per annum for post suit period, pendente lite and future interest is excessive. The same cannot be sustained and consequently, the plaintiff-respondent is granted interest @ 12% from the date the amount became due till the date of filing of the suit till the date of decree that @ 6% from the date of decree till payment. Such concession shall be available to the petitioner only if he makes the payment of the decretal amount within three months from today. With the said modification in the rate of interest, revision petition stands disposed of. (HEMANT GUPTA) JUDGE 20.8.2010 preeti