Wednesday, 6 January 2021

Interest

 

Code of Civil Procedure Section

 

INTEREST

34. Interest.— (1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court 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, 1[with further interest at such rate not exceeding six percent per annum as the Court deems reasonable on such principal sum], from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit :

2[Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six percent per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions.

Explanation I.—In this Sub-section, “nationalised bank” means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).

Explanation II.—For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability.]

(2) Where such a decree is silent with respect to the payment of further interest 1[on such principal sum] from the date of the decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefore shall not lie.

Note 1: Subs. by Act 66 of 1956, s. 2, for certain words.

Note 2: Ins. by Act 104 of 1976, s. 13 (w.e.f. 1-7-1977).

 

 

Code of Civil Procedure Section

Section 33 Judgment and decree

 

Code of Civil Procedure 

 

JUDGMENT AND DECREE

33. Judgment and decree.—The Court, after the case has been heard, shall pronounce judgment, and on such judgment a decree shall follow.

 

Code of Civil Procedure 


Notes:

Decree:

Decree is the formal expression of an adjudication. Decree conclusively determines the rights of parties. Decree is Defined u/s 2(2) of Civil Procedure Code, 1908. 

A decree may be either preliminary or final.  A decree is preliminary when a further procedure has to be taken before the suit can be completely disposed off. When adjudication completely disposes of the suit such decree is final.

It is the formal expression of an adjudication. It conclusively determines the rights of parties. A decree may be either preliminary or final.

A decree is preliminary when a further procedure has to be taken before the suit can be completely disposed off. When adjudication completely disposes of the suit such decree is final.

It may be noted that the term decree doesn’t include the following:

(a) Any adjudication from which an appeal lies as an appeal from an order or

(b) Any order or decision of the dismissal of the suit for default.

A decree must be drawn separately after a judgment.

Deemed Decrees: A deemed decree is one which, though not fulfilling the essential features of a decree as required by the Code has been expressly categorised as a decree by the legislature. The rejection of a plaint and the determination of questions of facts are deemed decrees. 

Judgment:

Judgment is defined u/s 2 (9) of the Civil Procedure Code. Judgment means the statement given by the Judge on the grounds of a Decree or Order.  Thus a judgment sets out the ground and the reason for the Judge to have arrived at the decision. Judgment is the decision of a court of justice upon the respective rights and claims of the parties to an action in a suit submitted to it for determination. Judgment is the statement of the Court on the grounds for having arrived at a decision.

A judgment must contain the following components:

1. A crisp statement of facts of the case;

2. The points or issues for determination;

3. The decision on such issues and finally;

4. The reasons for such a decision.


Section 32: Penalty for default

Code of Civil Procedure Section 31. Summons to witness.

 

32. Penalty for default.—The Court may compel the attendance of any person to whom a summons has been issued under section 30 and for that purpose may—

(a) issue a warrant for his arrest;

(b) attach and sell his property;

(c) impose a fine upon him 1[not exceeding five thousand rupees];

(d) order him to furnish security for his appearance and in default commit him to the civil prison.

Note 1: Subs. by Act 46 of 1999, s. 4, for certain words (w.e.f. 1-7-2002).

Part in Red is original provisions from CPC reproduced here for reference.

Code of Civil Procedure Section 33. Judgment and decree.

Simplified explanation:

Section 32 requires penalty for default of not appearing in the Court by the witness. Earlier, the Court had a power to impose a fine not exceeding five hundred rupees. By Amendment Act, 1999, the amount had been enhanced to five thousand rupees.

Reference: http://www.nja.nic.in/16%20CPC.pdf

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Summons to witness

 

Code of Civil Procedure Section

 

31. Summons to witness.—The provisions in sections 27, 28 and 29 shall apply to summonses to give evidence or to produce documents or other material objects.

 

Code of Civil Procedure Section

Power to order discovery and the like

 

Code of Civil Procedure Section

 

30. Power to order discovery and the like.—Subject to such conditions and limitations as may be prescribed, the Court may, at any time, either of its own motion or on the application of any party,—

(a) make such orders as may be necessary or reasonable in all matters relating to the delivery and answering of interrogatories, the admission of documents and facts, and the discovery, inspection, production, impounding and return of documents or other material objects producible as evidence;

(b) issue summonses to persons whose attendance is required either to give evidence or to produce documents or such other objects as aforesaid;

(c) order any fact to be proved by affidavit.

 

Code of Civil Procedure Section

Section 29: Service of foreign summonses

Code of Civil Procedure Section 28. Service of summons where defendant resides in another State.

1[29. Service of foreign summonses.—Summonses and other processes issued by—

(a) any Civil or Revenue Court established in any part of India to which the provisions of this Code do not extend, or

(b) any Civil or Revenue Court established or continued by the authority of the Central Government outside India, or

(c) any other Civil or Revenue Court outside India to which the Central Government has, by notification in the Official Gazette, declared the provisions of this section to apply, may be sent to the Courts in the territories to which this Code extends, and served as if they were summonses issued by such Courts.]

Note 1: Subs. by Act 2 of 1951, s. 6, for s. 29.


Code of Civil Procedure Section 30. Power to order discovery and the like.



 

Service of summons where defendant resides in another State

 

Code of Civil Procedure Section

 

28. Service of summons where defendant resides in another State.—(1) A summons may be sent for service in another State to such Court and in such manner as may be prescribed by rules in force in that State.

(2) The Court to which such summons is sent shall, upon receipt thereof, proceed as if it had been issued by such Court and shall then return the summons to the Court of issue together with the record (if any) of its proceedings with regard thereto.

1[(3) Where the language of the summons sent for service in another State is different from the language of the record referred to in sub-section (2), a translation of the record,—

(a) in Hindi, where the language of the Court issuing the summons is Hindi, or

(b) in Hindi or English where the language of such record is other than Hindi or English, shall also be sent together with the record sent under that sub-section.]

Note 1: Shall be applicable to commercial disputes of a specified value by Act 4 of 2016, s. 16 and the Schedule (w.e.f. 23-10-2015).

 

Code of Civil Procedure Section