⚖️ Legal Learning | Shri Ganpati Jurists
💡 Can Interest Be Granted Even If Not Mentioned in the Contract?
✅ Yes! Under Section 34 of the Code of Civil Procedure, 1908, even if a contract or plaint is silent about interest, the court has the power to grant it.
📌 Key Takeaways:
🔹 Court’s Discretion:
The court can award interest at a reasonable rate from the date of the suit till the date of decree, even if there's no mention of it in the suit document.
🔹 Post-Decree Interest:
From the date of decree till realisation, the court may grant interest up to 6% per annum.
🔹 Commercial Transactions (💼):
In commercial suits, the court can allow interest exceeding 6%, but not more than:
The contractual rate, OR
If not specified, the rate at which nationalised banks lend for commercial transactions.
📖 Sections Referred:
Section 34 CPC, 1908
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