Legal Case Summary

Case Details
Case ID 0fa8c272-e778-41fa-a3d8-2992a20235b1
Body View case body.
Case Number Civil Appeal No. 1746 of 1996
Decision Date Jan 07, 2003
Hearing Date
Decision The Supreme Court of Pakistan allowed the appeal, affirming the trial court's decision for the payment of interest on the decretal amount from the date of the suit till the realization of the amount. The court emphasized that interest can only be awarded from the date of the suit and that any interest prior to the suit cannot be claimed unless specified by substantive law or in a written demand. The court ruled that the appellants were entitled to 8% compound interest on the decretal amount, reinforcing the discretion of the court in awarding interest under section 34 of the Civil Procedure Code. The judgment of the High Court was set aside, and the appeal was allowed without any order as to costs.
Summary In the case of Civil Appeal No. 1746 of 1996, the Supreme Court of Pakistan addressed the issue of interest on a decretal amount under the Civil Procedure Code (CPC). The appellants, led by Raja Muhammad Sadiq, sought recovery of damages amounting to Rs. 11,32,000 from the respondents, including WAPDA. The trial court had initially decreed for a sum of Rs. 4,88,448 with an interest rate of 8% per annum until payment. The High Court later modified this decree, which prompted the appellants to appeal to the Supreme Court. The Supreme Court ruled that interest should be awarded from the date of the suit, emphasizing the discretionary nature of interest awards under section 34 of the CPC. This case highlights the judiciary's critical role in interpreting and applying procedural laws regarding financial claims and interest, marking a significant precedent in civil litigation concerning damages and interest claims. Keywords: Supreme Court, Civil Procedure Code, interest on damages, legal precedent, financial claims, discretionary power.
Court Supreme Court of Pakistan
Entities Involved WAPDA
Judges MIAN MUHAMMAD AJMAL, MUHAMMAD NAWAZ ABBASI
Lawyers Muhammad Munir Peracha, Advocate Supreme Court, Ch. Akhtar Ali, Advocate-on-Record for Appellants, Ghulzarin Kiyani, Advocate Supreme Court for Respondents
Petitioners 9 others, Raja MUHAMMAD SADIQ
Respondents 3 others, WAPDA through Chairman, WAPDA House, Lahore
Citations 2003 SLD 3446, 2003 PLD 290
Other Citations Abdulali P. Jivani v. Pakistan 1984 CLC 3257, Punjab State v. Ishar Singh AIR 1978 Punj. and Har. 241, Lahore Development Authority v. Own Homes Service Ltd. PLD 1983 Lah. 475, Rangpur Raiyat Bank v. Hesabuddin AIR 1932 Cal. 111, Ramanathan v. Ramanathan AIR 1960 Mad. 207, S.I. Railway Co. v. M.C. Mayilvahanan AIR 1943 Mad. 334, Mt. Amtul Habib v. Muhammad Yousaf AIR 1918 All. 234
Laws Involved Civil Procedure Code (V of 1908)
Sections 34