JUDGMENT
A.L. Bahri, J.
1. After hearing counsel for the parties this appeal is disposed of at the motion hearing stage.
2. The suit was filed for the recovery of Rs. 22,488/- on the basis of cash loan of Rs. 15,000/- taken on December 28, 1982 against a pronote. The interest payable was Rs. 1.56% per mensem. The trial Court decreed the suit for Rs. 19,800/- with proportionate costs and future interest. The plaintiff was held entitled to interest on the decretal amount from September 3, 1985 (date of the suit) at fee rate of i2% per annum till the date of the decree i. e. August 30, 1988 and future interest at the rate of 6% per annum till realisation of the amount. This judgment and decree was affirmed by the lower appellate Court. Hence this regular second appeal.
3. On merits, findings recorded regarding execution of the pronote and paymeat of consideration are wall founded and do not warrant interference in this second appeal. . It is only the question of amount of interest that has been further pressed into service
4. According to the counsel for the appellant the interest from the date of the suit till the decree could be granted on the principal amount and not on the decretal amount, Section 34 of the Code of Civil Procedure reads as under :-
“34. Interest:-(1) Where and in so far as a decree is for the payment of money, the Court may, in the decree, order interest at such rate as the Court deems reasonable to be paid on the principal such adjudged, from the date of the suit to the date of the decree, in addition to any interest adjudged on such principal sum for any period prior to the institution of the suit, with further interest at such rate not exceeding six per cent per annum as the Court desms reasonable on such sum, from the date of the decree to the date of payment, or to such earlier date as the Court thinks fit:
Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions,
“Explanation I : xxx xxx xxx
Explanation II : xxx xxx xxx.
(2) Where such a decree is silent with respect to the payment of further interest on such principal sum from the date of the decree to the date of payment or other earlier date, the Court shall be deemed to have refused such interest, and a separate suit therefore shall not lie.”
5. The trial Court was in error in allowing 12 per cent interest on the decretal amount from the date of the suit till the date of the decree. It should have been on the principal amount i.e. Rs. 15,000/-. Likewise future interest has also to be awarded on the principal amount though the rate of interest would be 6 per cent per annum, as ordered.
6. With this modification in the judgment and decree the appeal stands disposed of. There will be no order as to costs.