Holding

Under Section 152 CPC, courts may correct clerical or arithmetical mistakes at any time without an appeal, and the bank is entitled to simple interest at 16.5% per annum from the decree date until realisation, confined to the facts of the case.

Summary

The respondent Andhra Bank filed a suit for a preliminary decree for sale of mortgaged properties and a personal decree for a loan amount with future interest. The trial court, after hearing applications, dismissed the bank’s claim for interest, holding that the decree did not specify liability for future interest. On revision, the High Court allowed the bank’s claim and awarded interest at the contracted rate of 16.5% per annum. The bank appealed to the Supreme Court, contending that the court could correct the omission and that interest should be payable from the date of decree. The Supreme Court held that under Section 152 of the CPC, a court may correct clerical or arithmetical errors at any time without an appeal, and that the bank was entitled to simple interest at 16.5% from the decree date until realisation, limited to the facts of the case. Accordingly, the appeal was allowed, granting the bank interest, and the order was made without costs.

Issues considered

The applicability of Section 152 of the Code of Civil Procedure for correction of clerical or arithmetical errors without filing an appeal or review.
Whether the bank is entitled to interest at the contracted rate of 16.5% from the date of decree till realisation.
The court’s discretion under Section 34 of the CPC to award interest in a commercial loan case.

Legislation cited

Code of Civil Procedure, 1908s. 152, s. 34

Subjects

correction of judgmentclerical errorsarithmetical errorsCPC Section 152interest on decreecommercial loancourt discretionpreliminary decreemortgagerevisionappeal

Judgment

A B. SJVANANDA
v.
;HE ANDHRA BANK LTD. AND ANk.

MARCH 18, 1994

B [K. RAMASWAMY AND N. VENKATACHALA, J.1.J

Code of Civil Procedure, 190&-Ss.152, 34-Correction of judg-
.~

me11t/decree/orde1-Awarding of interest-Court's power-Held, aggrieved
party need not file appeal/review for correction of clelica/ or alithmatical e1rors
C wising in judgment/decree/order; the same may be corrected at any time by
the Court on its own or on application of a party to suit-Loan being taken
for com1nercial transaction, /oanee should pay interest at contracted rate on
plincipal amount from date of decree till date of realisation.

The respondent-Bank tile a suit seeking a preliminary decree for sale
D of properties mortgaged to it and a charge on hypothecated properties. A
personal decree against the appellant and others for decretal amount with
future interest was sought. The suit was decreed ex-parte. Two applications
were tiled before the trial Court · one .by the respondent-Bank claiming
interest at the rate of 16V2% on the decretal amotmt and the other by the
E appellant contending that no interest could be granted since the judgment
did not specify the liability relating to payment of future interest. The
application of the appellant was allowed. On revision apJilication filed by
the Bank, the High Court dismissed appellant's application. Hence the
appeal by special leave.

F Disposing of the appeal, this Court

HELD : 1.1. In view of s. 152, C.P.C., it is not necessary that the
'>
aggrieved party should file an appeal or a review for effecting correction
of clerical or arithmatical mistakes arising from any accidental slip or
G omission in the judgment or decree or order. The same may be corrected
at any time by the court either on its own or on the application of any of
the parties to the suit. (162-B·C]

1.2. In the instant case, the respondent-Bank had sought a relief in the
plaint for payment of a specified amount and interest thereon. The claim for
H future interest at 16V2%, which was the contracted rate of interest was made
'~60
SIVANANDA v. ANDHRABANKLTD. 161

~, in the suit itself. The Bank is entitled to claim interest in terms of' the A
contract at 16V2% from the date of' lending till the date of filing of the suit.
The loan was for a commercial ttansction, In the facts and circumstances,
irrespective of Court's discretion under s. 34, C.P.C., it would be just and
proper that the appellant should pay simple interest at the rate of l6V2%
per annum on the principal amount claimed in the suit from the date of the
B
decree till the date of realisation. This should be confined to the instant case
only on the peculiar facts of the case. [p.162-B-E]

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3659 of
1994.

From the Judgment and Order dated 7.2.1992 of the Andhra Pradesh
c
High Court in C.R.P. Nos. 2827/89 & 3423/89.

A. Subba Rao and A.D.N. Rao for the Appellant.

V.R. Reddy, Additional Solicitor General and P.P. Singh for the D
Respondent No. 1.

The following Order of the Court was delivered :

Leave granted.

We have heared both counsel.
E

The respondent filed 0.S. No. 74/79 on the file of the Additional
Subordinate Judge, Ananthpur, Andhra Pradesh on June 11, 1979 seeking
a preliminary decree for sale of properties covered by two simple
mortgages, dated July 3, 1976 and December 13, 1976 and a charge on the F
hypothecated moveables and immoveables, moveables have been men-
tioned in schedule 'B' and a personal decree against appellant and others
was sought for the decreetal amount with future interest and costs. The
suit was decreed ex- partc on March 13, 1986. Thereafter, two applications
were filed- one by the respondent-Bank claiming interest at the rate of
16\/2% on the decreetal amount and another by the appellant. The appel- G
!ant contended that no interest can be granted since the judgment did not
specify the liability relating to payment of future interest. The trial court
allowed the application of the appellant and dismissed the application of
the respondent-Bank. On revision filed by the Bank, the High Court, by
its order dated September 23, 1989 allowed the revision of the Bank and H
)

162 SUPREME COURT REPORTS [1994] 3 S.C.R.

A dismissed the application of the appellant. Thus, this appeal by special
leave.

We need not go, in depth, into the controversy, raised in tl1e case but
suffice to state that Bank sought a relief in the plaint for payment of an
amount specified and interest on the principal amount of Rs. 5,25,000. With
B interest accrued thereon till date of suit, the amount came to Rs.
6,89,917.79ps .. Section 152, C.P.C., clearly gives power to the Court to
amend clerical or arithametical mistakes in the judgment and decree or
order or any errors arising therein from any accidental slip or omission.
The same may, at any time, be corrected by the Court either of its own
c motion or on the application of any of the parties to the suit. Therefore, it
is not necessary that the aggrieved party should necessarily file an appeal
or review for effecting correction of the judgment or decree or order. But
in this casei as seen) that the claim for future interest at l6V2% was made
in the suit itself which admittedly, is the contracted rate of interest.
Therefore, the Bank is entitled to claim interest in terms of the contract at
D l6V2% from the date of lending till the date of filing of the suit. However,
the Court has discretion under Section 34 C.P.C. to award interest. Admit-
tedly, the loan was taken for construction of theatre. In other words, the
loan was for a commercial transaction. In the facts and circumstances of J

this case, we consider it just and proper that the appellant should pay
E simple interest at the rate of l6V2% per annum on the principal amount
claimed in this suit from the date of the decree till the date of realisation.
This should be confined to this case only, on the peculiar facts of this case.
It is stated in the appellant's written arguments that as on date, a sum of
Rs. 2,53,000 had already be.en paid and the appellant shall pay the balance
amount along with future interest within six months from today. We permit
F him to make payment accordingly. In the event, any default is committed
by the appellant, the benefit of this judgment will not be available to the >
appellant. The appeal is accordingly allowed to the above extent but in the
curcumstances, without costs.

R.P. Appeal disposed of.