Jehlum Exporters Pvt. Ltd. vs Oriental Insurance Company Ltd.

Mr. Mohammad Yaqoob Mir, J. - Petitioner seeks review of the judgment dated 13.08.2015 rendered in CIA No. 02/2004 in the case

titled ""Jehlum Exporters Pvt. Ltd. v. Oriental Insurance Co. & Ors."" In terms of said judgment respondent company has been held liable to

indemnify the review petitioner for the damage and has also been held liable to pay interest. The judgment and decree of the trial court stand

modified. The operative part of the judgment reads as under:

For the facts, reasons and findings recorded, suit as has been decreed only for an amount of Rs. 18,100/ is decreed for the whole value of the

consignment i.e. Rs. 18,28,100 (rupees eighteen lacs twenty-eight thousand one hundred) with interest @ 6% per annum from the date of decree

of trial court with costs payable by the respondent No. 1-Insurance Company minus the limited liability of Rs. 18,100/ to which respondent Indian

Airlines has been held liable as being one percent (1%) of the total value of the consignment for the carriage purposes.

According to learned counsel for the petitioner, the interest has been granted @ 6% per annum from the date of decree of the trial court when

the same was required to be granted from the date of institution of the suit as is ordained by Section 34 of the Code of Civil Procedure. In support

of this submission, relied on the judgment rendered by the Hon'ble Apex Court in the case of Mahesh Chander Bansal v. Krishna Swaroop

Singhal reported in 1997 STPL(LE) 24126 SC and the judgment rendered by the Division Bench of the High Court of Calcutta (AIR 1983

(Calcutta) 381). In short petitioner claims pendente lite interest.

In the judgment rendered by Hon'ble Apex Court in the case of Mahesh Chander Bansal v. Krishna Swaroop Singhal reported in 1997

STPL(LE) 24126 SC it has been held that main part of sub-section (1) of Section 34 Civil Procedure Code laying down that during the period

suit was pending in the Court, interest is to be awarded at a reasonable rate and for the period subsequent to passing of the decree, interest is to

be awarded @ 6% per annum and future interest at a higher rate can be awarded if the proviso is attracted.

In the instant case, interest has been granted on the amount to which the petitioner has been held entitled from the date of decree of the suit

when, in fact, as per mandate of Section 34 of the Code of Civil Procedure he was entitled to pendent lite interest. It appears that inadvertently

error has crept in by awarding interest from the date of decree of the suit. Same constitutes error apparent on the face of record, as a result

whereof Court is persuaded to correct the same.

Review petition allowed. The grant of interest as appeared in the operative part of the judgment payable from the date of decree is re-called,

same shall be read as ""from the date of institution of the suit"". This order shall form part of the main judgment.

Review petition, accordingly, succeeds.