Section 34 of CPC : Section 34: Interest.

Explanation using Example

Example 1:

Scenario: Rajesh lent Rs. 1,00,000 to his friend Suresh for personal use. Suresh promised to repay the amount within a year but failed to do so. Rajesh then filed a suit in the court to recover the money.

Application of Section 34:

• The court decrees that Suresh must pay Rajesh the principal sum of Rs. 1,00,000.
• The court orders interest at a rate of 8% per annum on the principal sum from the date Rajesh filed the suit to the date of the decree.
• Additionally, the court orders further interest at a rate of 6% per annum on the principal sum from the date of the decree until the date of payment.

Outcome:

• If Rajesh filed the suit on 1st January 2022 and the court passed the decree on 1st January 2023, Suresh would owe Rajesh Rs. 1,08,000 (principal + interest for one year).
• If Suresh pays the amount on 1st July 20...

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