Punjab State and Others vs Shanti Devi (Widow)

G.C. Garg, J.—Learned trial Court decreed the suit of the plaintiff for declaration to the effect that she was entitled to receive adhoc family pension at the rate of Rs. 125/- per month w.e.f. 30.9.1977 and enhanced adhoc family pension at the rate of Rs. 150/- per month w.e.f. 1.12.1979 and that she is entitled to arrears of pension from the due date with interest at the rate of 12% PA. w.e.f 4.11.1986 till the date of payment. Appeal of the State was dismissed by the learned Additional District Judge by Judgment and decree dated 27.7.1993.

Notice of motion of the second appeal was issued to the respondent who did not put in appearance despite service and was therefore, proceeded exparte.

I propose to dispose of the appeal finally as the contention raised by the Counsel for the appellants is a limited one, namely, the courts below could not grant interest at the rate of 12% per annum u/s 34 of the CPC from the date of decree till realisation. According to the learned Counsel future interest could only be granted at the rate of 6% per annum as the claim in the suit was not in respect of a commercial transaction. The contention has merit. Resultantly, the appeal is allowed to the limited extent that the plaintiff would be entitled to future interest at the rate of 6% per annum from the date of decree of the trial Court till payment and not at the rate of 12% per annum as granted by the courts below. No costs.