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Renusagar Power Co. Ltd vs General Electric Co on 7 October, 1993 cites

Union Of India vs A.L. Rallia Ram on 19 April, 1963

The said decision of the Privy Council has been followed by this Court in Thawardas Pherumal v. Union of India37, Union of India v. Rallia Ram36, Union of India v. Watkins Mayor & Co.35 and Union of India v. West Punjab Factories34 and it has been held that in the absence of any agreement, express or implied, or any provision of law, it is not 32 (1987) 16 CPR (3d) 193, 201 33 AIR 1938 PC 67: 65 IA 66: (1938) 1 MLJ 640 34 (1966) 1 SCR 580: AIR 1966 SC 395 35 AIR 1966 SC 275 36 (1964) 3 SCR 164: AIR 1963 SC 1685 37 AIR 1955 SC 468 : (1955) 2 SCR 48 693 possible to award interest by way of damages. This would show that there is no absolute bar on the award of interest by way of damages and it would be permissible to do so if there is usage or contract, express or implied, or any provision of law to justify the award of such interest. Merely because in Section 3(3)(c) of the Interest Act, 1978, the court is precluded from awarding interest on interest does not mean that it is not permissible to award such interest under a contract or usage or under the statute. It is common knowledge that provision is made for the payment of compound interest in contracts for loans advanced by banks and financial institutions and the said contracts are enforced by courts. 'Hence, it cannot be said that award of interest on interest, i.e., compound interest, is against the public policy of India. We are, therefore, unable to accept the contention that award of interest on interest, i.e., compound interest is contrary to public policy of India and the award in respect of compensatory damages awarded under item Nos. 2, 4 and 6 cannot be enforced under Section 7(1)(b)(ii) of the Act.
Supreme Court of India Cites 18 - Cited by 404 - J C Shah - Full Document

Seth Thawardas Pherumal vs The Union Of India(And Connected ... on 24 March, 1955

The said decision of the Privy Council has been followed by this Court in Thawardas Pherumal v. Union of India37, Union of India v. Rallia Ram36, Union of India v. Watkins Mayor & Co.35 and Union of India v. West Punjab Factories34 and it has been held that in the absence of any agreement, express or implied, or any provision of law, it is not 32 (1987) 16 CPR (3d) 193, 201 33 AIR 1938 PC 67: 65 IA 66: (1938) 1 MLJ 640 34 (1966) 1 SCR 580: AIR 1966 SC 395 35 AIR 1966 SC 275 36 (1964) 3 SCR 164: AIR 1963 SC 1685 37 AIR 1955 SC 468 : (1955) 2 SCR 48 693 possible to award interest by way of damages. This would show that there is no absolute bar on the award of interest by way of damages and it would be permissible to do so if there is usage or contract, express or implied, or any provision of law to justify the award of such interest. Merely because in Section 3(3)(c) of the Interest Act, 1978, the court is precluded from awarding interest on interest does not mean that it is not permissible to award such interest under a contract or usage or under the statute. It is common knowledge that provision is made for the payment of compound interest in contracts for loans advanced by banks and financial institutions and the said contracts are enforced by courts. 'Hence, it cannot be said that award of interest on interest, i.e., compound interest, is against the public policy of India. We are, therefore, unable to accept the contention that award of interest on interest, i.e., compound interest is contrary to public policy of India and the award in respect of compensatory damages awarded under item Nos. 2, 4 and 6 cannot be enforced under Section 7(1)(b)(ii) of the Act.
Supreme Court of India Cites 15 - Cited by 272 - Full Document
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