- (1.) Special leave granted.
(2.) We have heard learned counsel for the parties. The only question which falls for consideration in this appeal is whether the High court was justified in directing payment of interest @ 6% in respect of the period the suit was pending in the trial court.
(3.) The facts briefly stated are as follows: The appellant was a partner in a partnership firm. He ceased to be a partner in the firm with effect from 12/5/1979. On his ceasing to be a partner a deed of dissolution was drawn on 12/5/1979 whereunder the share of the appellant in the assets and goodwill of the partnership was worked out at Rs. 90,000. 00 The appellant was paid Rs. 45,000. 00 at that time and the balance amount of Rs. 45,000. 00 was to be paid after one year. The said amount, however, was not paid and, therefore, the appellant, on 11/5/1982, filed the suit which has given rise to this appeal for the recovery of the amount of rs 45,000. 00 with interest @ 12% per annum. The said suit was decreed by the trial court and interest was awarded @ 6% per annum throughout, from 25/5/1980 till realisation of money. On appeal the appellate court modified the decree and awarded interest @ 12% per annum from 12/5/1980 to 11/5/1982, the date of the filing of the suit, and @ 19.5% per annum for the period subsequent to the date of filing of the suit till realisation of the amount. The High court, in second appeal, has maintained the direction 682 regarding payment of interest @ 12% per annum from 12/5/1980 till the date of the filing of the suit on the view that payment of interest for that period was governed by the Interest Act, 1978. As regards the interest pendente lite and future interest the High court has held that it was governed by Section 34 of the Code of Civil Procedure (CPC) and the High court has directed that the said interest shall be paid @ 6% per annum. Feeling aggrieved by the said direction given by the High court the appellant filed this appeal.;