IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Regular Second Appeal No. 3225 of 2008 Date of Decision : July 21, 2009 Hardev Singh …..Appellant Versus Nazam Singh …..Respondent CORAM : HON’BLE MR. JUSTICE T.P.S. MANN Present : Mr. Ashok Kumar Khunger, Advocate Mr. Akshay Jain, Advocate for Mr. S.K. Jain, Advocate T.P.S. MANN, J. Suit for recovery filed by the respondent against the appellant on the basis of a pronote was decreed by the trial Court and he was held entitled to recover an amount of Rs.1,76,000/- with costs alongwith pendente lite interest at the rate of 12% per annum. The judgment and decree passed by the trial Court was challenged by the appellant by filing the first appeal, which was dismissed by the lower appellate Court. Aggrieved of the same the present second appeal has been filed under Section 100 of the Code of Civil Procedure. As per the plaint, the defendant-appellant had borrowed a sum of Rs.1,10,000/- from the plaintiff-respondent on 25.3.2000 with a R.S.A. No. 3225 of 2008 promise to repay the same on demand alongwith with interest at the rate of 2% per month (24% per annum) and in lieu thereof, the defendant had executed a pronote and receipt of even date. As the defendant did not repay any amount towards the principal or the interest, the plaintiff filed the suit in question so as to recover an amount of Rs.1,76,000/-, i.e. Rs.1,10,000/- as principal and Rs.66,000/- as interest thereupon, upto 24.9.2002. At the time of preliminary hearing, notice of motion was issued qua rate of interest only. The respondent stands served and represented. Learned counsel for the appellant has submitted that both the learned Courts below decreed the suit of the respondent and allowed interest at the rate of 24% per annum on the principal amount from the execution of the pronote upto the filing of the suit whereas interest beyond 12% per annum should not have been granted. Even pendente lite should not have been allowed at the rate of more than 6% per annum whereas it has been granted at the rate of 12% per annum. Learned counsel for the respondent, after obtaining instructions from his client, states that he has no objection if interest on the principal amount is granted at the rate of 12% per annum from the date of the pronote till the filing of the suit and pendente lite interest at the rate of 9% per annum. -2- R.S.A. No. 3225 of 2008 In view of the above, there is no dispute between the parties qua rate of interest @ 12% per annum on the principal amount from the date of the pronote till the filing of the suit. The dispute remains in respect of pendente lite interest, the defendant asserting that it should be paid @ 6% per annum while the plaintiff insisting @ 9% per annum. Section 34 of the Code deals with the power of the Court to grant interest on the decretal amount. The Court has been given a discretion to award interest at such rate as it deems reasonable to be paid on the principal sum adjudged from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit. Thus, there is no restriction on the rate of interest to be granted on the principal sum adjudged from the date of the suit to the date of the decree, excepting that it has to be reasonable. The pendente lite interest, awarded by the learned Courts below @ 12% per annum, could not be said to be unreasonable especially when till date, not even a single penny has been returned by the defendant to the plaintiff. However, the plaintiff has shown magnanimity in asking for pendente lite interest @ 9% per annum, may be hoping that this would enable the defendant to return the borrowed amount. -3- R.S.A. No. 3225 of 2008 Resultantly, the appeal is allowed by modifying the impugned decree to the extent of interest on the principal amount from the date of the pronote and also the pendente lite interest. The plaintiff/respondent shall be entitled to interest @ 12% per annum on the pronote amount of Rs.1,10,000/- from the date of the pronote till the filing of the suit. He shall also be entitled to pendente lite interest @ 9% per annum on the amount of Rs.1,43,000/-, i.e. principal amount of Rs.1,10,000/- and the interest amount of Rs.33,000/- thereupon for the period prior to the institution of the suit. ( T.P.S. MANN ) July 21, 2009 JUDGE satish Whether to be referred to the Reporters : YES / NO -4-