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Report No. 55

27. Minister's reply.-

Dealing with the various points, the Minister of Legal Affairs1 said:-

"Now, take, for instance, clause 2. I thought it was a very simple provision and I never expected that there would be anybody in this House who would very seriously object to making a change in the year 1955, that when costs are awarded, the courts should not also award interest on the amount of costs. Some of my friends, very vehemently argued on that point. There was Shri S.V. Ramaswamy, a barrister, who said 'why should he not get interest on that? Incurring costs and giving a loan are too distinct matters.

I can understand that interest is given primarily when there is an agreement to give interest, because it is something in the nature of a thing which should carry interest. But to say that because a man goes to a court and succeeds, therefore, the other side should be vindictively dealt with, that it should incur not only the costs which may be heavy but also, add to that the interest on it, is something which I, for one, fail to understand, as to how it can be consistent with whatever ideas we have got. That people should be expected to pay costs is reasonable: if the party succeeds, the other side should pay costs. (Shri S.V. Ramaswamy rose).

Shri Pataskar: I know there are some people-there are one or two other hon. Members also-who think that way, but I for one do not think that anybody should be allowed to make out of this cost of litigation something as if it was a loan which he gave to the other side. If it is not viewed from that aspect, I think it would not be proper, from the point of view of the ideas of justice, at any rate.

Shri S.V. Ramaswamy: If the money was invested in a Bank, would it not have carried interest?

Shri Pataskar: I would not enter into an argument, because this is not a discussion about the social phenomena underlying these processes.

Shri S.S. Vora: Can you avoid that?

Shri Pataskar: I would rather avoid it and I think the majority will agree that this is not the right thing to do.

1. Minister of Legal Affairs (Shri Pataskar), Lok Sabha debates, 2nd August, 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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