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Report No. 55

22. View of Shri Tek Chand as to interest on costs.-

In the Debate on the Bill, there was considerable discussion as to the amendment deleting the power to award interest on costs. One of the Members of the Lok Sabha (who was a retired High Court Judge), observed1:-

"In this connection, a reference has been made to section 35, sub-section (3), which according to clause 3 of the Bill, is to be omitted. Not that I have usurious propensities, but I do not like this provision. It is true that there should not be any profiteering by the people; I concede that, but there are instances when the costs amount to five figures or more, and there is no reason why, when an unsuccessful party is subjecting the successful party not only to a long dilatory and unending dispute, but also to frivolous and vexatious litigation whereby he is out of pocket to the tune of several thousands, the law or the legislature should be so solicitous that such person should not pay interest if he does not propose to pay or if he intends to delay the payment of the costs. One unfortunate and unhappy feature of administration of civil law in our land, is, apart from delays and objections of frivolous and vexatious nature, justice is made available, if at all, at a very high and exorbitant price."

1. Shri Tek Chand, Lok Sabha Debates, 14th November, 1956.

Rate of Interest for the Period after Decree and Interest on Costs Under Sections 34 and 35 of the Code of Civil Procedure, 1908 Back

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