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Report No. 144

3.1.8. Recommendation.-

This question needs to be settled. Ordinarily, the contractual rate would not be exceeded. But I here can be circumstances where the contractual rate is too low and does not meet the requirements of justice. There can be a situation wherein the defendant has deliberately protracted the proceeding. In such cases, the court should have power to award a higher rate of interest than that contracted lot.

If the defendant has been detaining the money and earning interest at a higher rate in the market, the plaintiff should not suffer from the delay. From this point of view, it appeals to be desirable to provide that the court may, in the interest of justice, direct that the defendant shall pay a rate of interest higher than the rate provided for in the contract. This pendente lite interest would of course be granted by the courts as per practice.

3.2. Section 34 and Negotiable Instruments

3.2.1. Section 34, C.P.C. has also led to another problem pertaining to negotiable instruments.

Conflicting Judicial Decisions pertaining to the Code of Civil Procedure Back

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