CPC Section 34: Interest
Code of Civil Procedure, 1908 · Part 1: Suits in General
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 sum 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 deems reasonable on such principal 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.—In this sub-section, “nationalised bank” means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970).
Explanation II.—For the purposes of this section, a transaction is a commercial transaction, if it is connected with the industry, trade or business of the party incurring the liability.]
(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 therefor shall not lie. C OSTS
Official reference: Government reference hosted by Andhra Pradesh High Court — checked: 1 October 2026.Banaka editorial consolidation of the general central text, with the 2025 postal-service amendments applied. Not an official or certified edition. State/High Court variations, commercial-dispute modifications and prescribed Appendix forms are not consolidated here; consult the source and applicable court rules. Hindi learning guides are original explanations, not a statutory translation.Read the original schedule and amendment notes
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 9. Courts to try all civil suits unless barred
- 10. Stay of suit
- 11. Res judicata
- 12. Bar to further suit
- 13. When foreign judgment not conclusive
- 14. Presumption as to foreign judgments
- 15. Court in which suits to be instituted
- 16. Suits to be instituted where subject-matter situate
- 17. Suits for immovable property situate within jurisdiction of different Courts
- 18. Place of Institution of suit where local limits of jurisdiction of Courts are uncertain
- 19. Suits for compensation for wrongs to person or movables
- 20. Other suits to be instituted where defendants reside or cause of action arises
- 21. Objections to jurisdiction
- 21A. Bar on suit to set aside decree on objection as to place of suing
- 22. Power to transfer suits which may be instituted in more than one Court
- 23. To what Court application lies
- 24. General power of transfer and withdrawal
- 25. Power of Supreme Court to transfer suits, etc
- 26. Institution of suits
- 27. Summons to defendants
- 28. Service of summons where defendant resides in another State
- 29. Service of foreign summonses
- 30. Power to order discovery and the like
- 31. Summons to witness
- 32. Penalty for default
- 33. Judgment and decree
- 35. Costs
- 35A. Compensatory costs in respect of false or vexatious claims or defences
- 35B. Costs for causing delay