Report No. 55
15. Reasons for the amendment of 1956.-
It is, at this stage, necessary to go into the reason for the amendment made in the Code of Civil Procedure in 1956. In the statement of Objects and Reasons, annexed to the Bill of 1955, (which proposed this amendment), the following explanation1 was given in support of the relevant clauses2:-
"Clause 2:-Section 34, which enables courts to award interest, does not impose a maximum limit. This clause proposes to limit the rate of interest which a Court can award on the decretal amount to six per cent. per annum.
Clause 3:--It is proposed to take away the power of the Court to give interest on costs."
1. Code of Civil Procedure (Amendment) Bill No. 25 of 1955 (Lok Sabha); Statement of Objects and reasons.
2. Clause 2 related to section 34 of the Code; Clause 3 related to section 35 of the Code.