WHY DO COURTS AWARD ONLY 6% - 9% INTEREST IN MONEY DECREE?

Money Deccree, Business Law

While Awarding money decree / Consumer Relief and reliefs of similar nature , Courts (Upto the Level of Hon’ble Supreme Court of India) are awarding Simple Interest @ 6% - 9% per annum. Whether this awarded Interest Meets the ends of Justice ? Does it have any deterrent effect on the Society or is an adequate compensation to the complainant / plaintiff?

SUPREME COURT, NCDRC JUDGMENT

Recently, National Consumer Commission in the matter of Smita Uban Vs. Pioneer Urban Land & Infrastructure Ltd. Consumer Case No. 1430 of 2017 decided on 23.07.2020, after referring number of Judgments of Hon’ble Supreme Court of India awarded Simple Interest @ 9% per annum. It is a matter of common knowledge that Court generally award interest only in this range (6% - 9% p.a.)

Rate of Interest = Bank Rate

Why should the Rate of Interest awarded by the Court should be equivalent to Bank Rate of Interest ? Has the Litigant given the Money to earn this Bank Rate of Interest ? Awarding of such rate of interest is a punishment to the Plaintiff / Complainant. It also breeds litigation and encourages the Wrong Doers to retain the money inasmuch as he will not be able to get the money at such low rate of interest. Fact of the matter is the rate of interest awarded by the Court even fails to meet the Inflation, meaning thereby that in real terms Winner gets lesser money than he gave.


In my opinion Exhobrant Rate of Interest should be awarded by the Court say, 36% p.a. To 48% p.a. it will discourage the Wrong Doers from litigating inasmuch as they will be aware that at the end of the day they have to suffer. This will also reduce conflicts in the society and also frivolous litigation.


FOR COPY OF JUDGMENT PLEASE CLICK BELOW


Location: Delhi, India
Praveen Agrawal Advocate Supreme Court of India A 37 LGF, Amar Colony, Lajpat Nagar - 4, New Delhi Phone # 9811702850 dokania100@gmail.com NO CALLS PLEASE ONLY WHATSAPP ME - IF I FEEL NECESSARY I WILL CALL YOU BACK

Comments

Post a Comment

Popular posts from this blog

WILL PROCEEDINGS START DE-NOVO OR CONTINUE IN CASE OF RETURN OF PLAINT UNDER ORDER 7 CPC?

Image
      Order 7 and Return of Plaint is one of the fundamental objections taken by Defense Counsel in Civil Litigation. In case of return of Plaint from a Court lacking inherent Jurisdiction to the court of appropriate Jurisdiction, a moot question arises for consideration is whether the proceedings shall start “De-Novo” (fresh) or it will be a continuance of the earlier proceedings ?   There has been a difference of opinion even in Supreme Court and therefore the matter was referred to a larger bench. The Issue is now settled in the matter of  EXL Careers Vs. Frankfinn Aviation Services  Private Limited    decided on 05-08-2020 as follows :-    (1) The proceedings will start afresh (DE-NOVO) and NO cognizance of  proceedings or earlier court will be considered.   (2) For the purpose of limitation, Plaintiff is entitled to exclude the period during which he prosecuted the case before the court having no jurisdiction.   ...
Read more

BORROWER LIABLE TO PAY INTEREST EVEN WHEN LENDER REFUSES TO ACCEPT PAYMENT

Image
      The Common understanding is if Lender has refused to accept the repayment of Loan, then the Borrower’s Liability to pay the interest ceases from the date of such refusal. However, this does not seems to be the correct proposition of Law.  In an recent judgment titled Balwinder Singh Vs. Mithoot Finance (P) Limited and Ors Ld National Consumer Dispute REdressal Commission (NCDRC), (Revision Petition No. 2194 of 2015, Decided On: 23.07.2020 ) refused to accept the argument of the Borrower that he has tendered to repay and imposed an interest on the borrower even for the period subsequent to the said offer to repay.   While coming to this conclusion , LD NCDRC relied on the Judgment of Hon'ble Supreme Court in the matter of Alok Shanker Pandey Vs. Union of India &Ors. , II (2007) CPJ 3 (SC) has observed as under:-  “9. It may be mentioned that there is misconception about interest. Interest is not a penalty or punishment at all, but it is the normal...
Read more

IS UNREGISTERED FAMILY SETTLEMENT DEED ADMISSIBLE AS AN EVIDENCE ?

Image
     Unregistered family settlement deed  Unregistered family settlement deed can be relied upon by the Court even though it transfers Immovable Property. Such Transfer is not bad in law.   Thus, a large Scope has been created to settle landed properties between the Family Members even without payment of  Registration Charges, which are very heavy (in some states they are even 8% or more of the disclosed value). Save Registration Fees.   This proposition is laid down in the matter of Ravinder Kaur Grewal Vs Manjit Kaur by Supreme Court on 31-07-2020 in the following words  The settled legal position is that when by virtue of a family settlement or arrangement, members of a family descending from a common ancestor or a near relation seek to sink their differences and disputes, settle and resolve their conflicting claims or disputed titles once and for all in order to buy peace of mind and bring about complete harmony and goodwill in the family, su...
Read more