
Praveen Kumar
February 17, 2025 at 11:27 AM
*M/s. Tomorrowland Ltd. V. HUDCO Ltd. (2025 SC)*
1. The award of “interest” u/s. 34 CPC is a discretionary exercise steeped in equitable considerations and also ensuring neither undue enrichment nor unfair deprivation.
2. As a general principle, in commercial disputes, the award of interest, pendente lite or post decree, is typically granted as a matter of course. This is because such interest serves to compensate the aggrieved party for the time value of money that was due but withheld during the legal process. It reflects an established norm aimed at ensuring fairness and equity in commercial transactions.
3. However, the court may deny the interest on the money ordered to be refunded if the conduct of the party is rife with instances where it has also sought to undermine the authority and integrity of the judicial process, by treating the court with disregard, and attempting to exploit procedural mechanisms for personal gain.
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