Report No. 55
7. Summary of the present position.-
To summarise the present position:-
For the pre-institution period, the rate of interest is the rate allowed by substantive law, (subject to the provisions of the various Acts passed by the Legislature limiting the rate of interest), and is outside the Code of Civil procedure. Interest pendente lite is in the absolute discretion of the court, by virtue of section 34 of the Code. Interest for the period after the date of the decree till realisation of the decretal amount is also in the discretion of the court under section 34, but it is subject to the over-all limitation that the court cannot award any interest on the principal sum adjudged for such period at a rate higher than 6 per cent.
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