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Criminal Procedure Code QUESTION #9509
Question 1
A obtains a decree for Rs. 1,000,000 with interest at 10% per annum from the date of the suit. B satisfies only the principal amount. A applies to execute the decree for post-decree interest. B argues the decree is silent about post-decree interest, so none is payable. Is B correct?
  • No; post-decree interest is automatically equal to the pre-decree interest rate
  • No; Section 34(2) CPC provides that where a money decree is silent about further interest from the date of the decree to payment, the Court shall be presumed to have refused such further interest, but the Court retains power to award interest at the Court rate in appropriate cases; moreover, the decree-holder may apply for interest under the terms of the decree✔️
  • Yes; once the principal is paid the decree is fully satisfied
  • Yes; if the decree is silent, no post-decree interest accrues
Correct Answer Explanation
Section 34 CPC governs interest. Sub-section (2) provides that silence in a decree on further interest creates a presumption of refusal of post-decree interest at the rate awarded, though the Court may award interest at the Court rate. If the decree expressly awards interest from the date of suit to the date of decree, it speaks only to that period; execution for post-decree interest depends on the terms of the decree and Section 34(2).