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Union Bank Of India vs Chhatarpur Siliment Sales Corporation ... on 24 January, 2002 cites

Secretary Irrigation Department ... vs G.C. Roy on 12 December, 1991

11. The Constitution Bench of Supreme Court in Central Bank of India v. Ravindra, I (2002) BC 150 (SC)=VI (2001) SLT 400-2001 AIR SCW 4468, referring to its earlier decision of Secretary, Irrigation Department, Government of Orissa v. G.C. Roy, (1992) 1 SCC 508, observed that interest for the period anterior to the institution of suit is not a matter of procedure and that pre-suit interest is referable to substantive law. It was further observed that pre-suit interest can be sub-divided into two sub-heads : (1) where there is a stipulation for the payment of interest at a fixed rate; (2) where there is no such stipulation. If there is a stipulation for the rate of interest, the Court must allow that rate up to the date of the suit subject to three exceptions (i) any provision of law applicable to money lending transactions, or usury laws or any other debt law governing the parties and having an overriding effect on any stipulation for payment of interest voluntarily entered into between the parties; (ii) if the rate is penal, the Court must award at such rate as it deems reasonable; (iii) even if the rate is not penal the Court may reduce if the interest is excessive and the transaction was substantially unfair. If there is no express stipulation for payment of interest the plaintiff is not entitled to interest exception proof of mercantile usage, statutory right to interest, or an implied agreement. It was further observed in the said case that, interest from the date of suit to date of decree is in the discretion of the Court. Interest from the date of the decree to the date of payment or any other earlier date appointed by the Court is again in the discretion of the Court and the discretion can be exercised either to award the sum or not to award as also the rate at which to award.
Supreme Court of India Cites 39 - Cited by 639 - K N Singh - Full Document
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