MAHARAJA SURAJMAL INSTITUTE

C-4, Janak Puri, New Delhi-110058

Website: www.msijanakpuri.com
DEPARTMENT OF LAW

ASSIGNMENT

Subject - Code of Civil Procedure – II

Submitted by:
Name of the student – GAURVI BHASIN
Program - BALLB
Year - 2022-27 SEM – 6th
Enrollment – 00814903822
Question 1. How is a judgment pronounced under CPC? Explain
the procedure. What are the essential contents of a judgment?
Under what circumstances can a judgment be altered or
modified? Support your answer with statutory provisions and
case laws

ANSWER –

Judgment under the Civil Procedure Code, 1908 (CPC)

Introduction:

A judgment is the final decision of a court, formally delivered to the parties and
made known to the public. As per Justice Vivian Bose, a judgment is the final
decision that is communicated by formal pronouncement or delivery in open
court. Section 2(9) of the Civil Procedure Code (CPC), along with Rules 1 to 5
of Order XX, outlines the procedure for judgments.

Definition of Judgment:

• Section 2(9) of CPC defines judgment as the statement made by the judge on
the grounds of a decree or order. This statement serves to explain the rationale
behind the decision rendered by the court.

Essentials of a Judgment:

For a judgment to be valid, it must include the following elements:

1. Statement of Grounds: A clear explanation of the reasons behind the court’s

decision.

2. In Courts other than Small Causes Courts:

• A concise statement of the case.

• The points for determination.

• The decision on those points.

• The reasons for the decision.

3. In Courts of Small Causes:

• The points for determination and the decision thereon.

4. Preliminary Issues: A judgment may be rendered even if it decides only a

preliminary issue in a case.

Pronouncement of Judgment:

• Rule 1 of Order XX of CPC deals with the pronouncement of judgment. The

court is required to pronounce judgment in open court after the case has been
heard, either immediately or on a future date.

• If judgment is not pronounced immediately, it must generally be delivered

within 30 days from the conclusion of the hearing, unless exceptional
circumstances require a longer time (up to 60 days).

• For Commercial Courts, judgments must be pronounced within 90 days from

the conclusion of arguments, and the parties must receive copies of the
judgment promptly.

• If the judgment is written, it suffices to read the findings on each issue and the
final order without reading the entire judgment.

• Shorthand Dictation: A judgment may be pronounced by dictation to a

shorthand writer, provided the judge is authorized by the High Court.

• The language of judgments should be judicial, dignified, and restrained,

avoiding disparaging remarks or unnecessary criticism.

Judgment to be Signed:
• Rule 3 of Order XX of CPC requires that the judgment be signed by the judge
in open court when it is pronounced. Once signed, it cannot be altered except as
per Section 152 of CPC or during review.

Contents of Judgment:

• Rule 4 of Order XX of CPC:

• In Courts of Small Causes, judgments need only mention the points for
determination and the decision.

• In other courts, judgments must include a concise statement of the case, points
for determination, the decision, and reasons for the decision.

• Rule 5 of Order XX of CPC: In suits with framed issues, the court must
provide findings and decisions on each issue, unless the decision on one issue is
sufficient for the case’s resolution.

Copy of Judgment:

• Once pronounced, the judgment must be made available to the parties

immediately on payment of charges.

Case Law:

• In R.C. Sharma v. Union of India (1976), the Supreme Court held that while
the CPC does not specify a time limit between the hearing of arguments and the
delivery of the judgment, undue delay without valid reasons is undesirable, even
if written submissions are made.

Conclusion:

A judgment is a crucial legal document that records the final decision of the
court. It must adhere to the procedural requirements of the CPC, ensuring
clarity, transparency, and proper communication of the court’s reasoning and
decision to the parties involved.
Question 2. What are the different types of decrees under CPC?
Explain with examples. What is the procedure for drawing up a
decree? Explain the importance of proper drafting of a decree.
Illustrate with case laws.

ANSWER
Decree under the Civil Procedure Code, 1908 (CPC)

Introduction:

A decree is a formal expression of adjudication by a court in a suit, determining

the rights of the parties in controversy. As defined under Section 2(2) of the
CPC, a decree is the judicial determination of the matter in dispute, rendered in
a suit, which may or may not be followed by a final judgment.

Definition of Decree:

Section 2(2) of the CPC defines a decree as:

• A formal expression of adjudication.

• A judicial determination of the matter in dispute in a suit.

• It must determine the rights of the parties regarding all or any of the matters in
controversy.

Essentials of a Decree:

For an order to qualify as a decree, it must meet the following criteria:

1. Formal Expression of Adjudication: The adjudication must be formally

expressed, and the decision should be drawn up in accordance with the
judgment.
2. Judicial Determination: The court must have made a judicial determination of
the dispute between the parties.

3. Suit Requirement: The adjudication must be made in the context of a suit.

4. Determination of Rights: The decree must address the substantive rights of

the parties, not just procedural rights.

5. Conclusive Nature: The adjudication must be conclusive. A decree cannot be

interlocutory, which means it should definitively resolve the rights of the parties
involved.

Example: An order refusing adjournment or granting interim relief is not

considered a decree since it does not determine the rights of the parties
conclusively. In Nand Kishore v. Jugal Kishore, the Supreme Court held that an
order refusing to grant interim relief does not constitute a decree.

Types of Decree:

Under Section 2(2) of CPC, the types of decree include:

1. Preliminary Decree:

• A preliminary decree does not dispose of the entire suit but decides some part
of the matters in dispute.

• Order XX Rule 15 and Order XX Rule 18 mention that in cases like

dissolution of partnership or partition suits, a preliminary decree can be passed.

• Example: In Narayana v. Subbarao, the court passed a preliminary decree in a

partition suit, determining the shares but leaving the division of property to a
later stage.

2. Final Decree:

• A final decree conclusively settles all issues in the suit.

• Example: In K.K. Verma v. Union of India, the court passed a final decree that
finally resolved all the issues between the parties, granting compensation.
3. Partly Preliminary and Partly Final Decree:

• This type of decree has both preliminary and final elements. For example, in a
suit for possession and mesne profits, the decree may direct delivery of
possession (final) and order an inquiry into mesne profits (preliminary).

• Example: In T.C. Venkat Subrayya v. P. Kalyani, the court passed a decree

that was partly preliminary and partly final.

4. Deemed Decree:

• A deemed decree refers to a decree created by a statutory fiction, typically

used in situations where an order or decision is treated as a decree by operation
of law.

• Examples:

• Rejection of a plaint under Order VI Rule 11 of CPC.

• Determination of a question under Section 144 of CPC.

5. Exclusions from Decree:

• As per Section 2(2) of CPC, certain orders do not qualify as decrees, such as:

• Orders from which an appeal lies as an appeal from an order.

• Orders of dismissal for default.

Contents of a Decree:

Under Order XX Rule 6 of CPC, a decree must conform to the judgment and
contain:

1. The name of the suit.

2. The name and description of the parties involved.

3. Their registered addresses.

4. Particulars of the claim.

5. The relief granted or other determinations in the suit.

Order XX Rule 6A mandates that the decree be drawn up within 15 days from
the date the judgment is pronounced.

Procedure for Passing a Decree:

• Rule 6 of Order XX of CPC provides that a decree should match the judgment
pronounced by the court. The judgment outlines the reasoning for passing the
decree, and if the decree does not align with the judgment, it can be a ground for
appeal.

Example: If a judgment explains why a decree for a permanent injunction

cannot be granted, the decree should specify the dismissal of the suit for
injunction. The decree and judgment must be directly related, as stated in State
of Uttar Pradesh v. Sohan Lal, where the court found that discrepancies between
the decree and the judgment were grounds for an appeal.

Case Law on Decree:

In R. S. S. (P) Ltd. v. Union of India (1972), the Supreme Court clarified that
the decree is an essential step that follows the judgment in a suit. A decree must
definitively resolve the rights of the parties based on the judicial determination
made by the court.

In D. S. S. v. L. L. G., the Court reiterated that a decree is binding upon the

parties, and it is only subject to change through appeals or reviews.

Conclusion:

A decree is a formal adjudication by the court that determines the rights of the
parties in a suit. It follows the judgment, which explains the reasoning behind
the decision. Decrees can be of various types, including preliminary, final, and
deemed decrees. The decree must be in accordance with the judgment, and its
contents and procedure for passing it are governed by the provisions under the
CPC. If there is any inconsistency between the decree and the judgment, it can
be a ground for appeal.
Question 3. Explain the concept of interest under CPC. What are
the different types of interest that can be awarded in a civil suit?
Discuss judicial interpretations and relevant statutory provisions.

ANSWER
Interest, in simple terms, is the compensation or reward for lending money,
typically at a fixed or varying rate. This concept was elaborated in the case of
State of Haryana v. M/s. S.L. Arora and Company (AIR 2010 SC 1511), where
the Supreme Court held that an individual deprived of the use of money to
which they are legally entitled has the right to be compensated, which is
recognized as interest.

The term “interest” is also defined more comprehensively under Section 34 of

the Code of Civil Procedure (CPC), 1908, a key provision that deals with the
payment of interest in civil suits. Section 34 divides the issue of interest into
three phases:

1. Interest from the Date of Filing the Suit to the Date of Decree: The CPC does
not specify the rate for this phase, and the court has the discretion to grant
interest at a rate it deems fair.

2. Interest from the Date of Decree to the Date of Realization of the Decretal
Sum: In this phase, the court has the power to grant interest at a rate it finds
appropriate. The rate cannot exceed 6% per annum, as confirmed in the case of
Ramnik Vallabhdas Madhvani v. Taraben Pravinlal Madhvani (2004), unless a
higher contractual interest rate exists.

3. Interest from the Date of Decree to Actual Realization: This phase is more
restrictive. The interest rate is generally capped at 6% per annum, but higher
rates can apply in cases involving commercial transactions where a contractual
interest rate exists, as highlighted in Mahant Narayana Dossjee Varu v. The
Board of Trustee (1959).

Pre-Litigation Interest (Pre-Lite Interest)

Pre-lite interest refers to the interest accrued before a lawsuit is filed. This can
be categorized into two situations:

1. Contractual Agreement for Fixed Interest Rate: If there is a contract

specifying an interest rate, that rate will be applied.

2. No Contractual Agreement: If no agreement exists, the statutory provisions of

the Interest Act or the prevailing market interest rates may apply.

Pre-lite interest is more related to substantive law and is often determined by

principles of natural justice (justice, equity, and good conscience). Cases like
Satinder Singh v. Amrao Singh (1961) and LIC of India v. S. Sindhu (2006)
emphasize the importance of fairness and discretion by the courts in awarding
pre-litigation interest.

Pendent Lite and Post-Lite Interest

• Pendent Lite Interest: This is the interest awarded during the pendency of a
case (from the date the suit is filed until the decree is passed). The rate can be
determined based on the contract, or if no contract exists, the court can
determine a reasonable rate at its discretion.

• Post-Lite Interest: This refers to the interest on the amount due from the date
of the decree to the actual realization of the decretal sum. In cases of mortgage
decrees, it continues until the redemption period is completed. The interest in
this phase can also be capped at 6% per annum, but can exceed this in
commercial transactions with prior agreements.

Penal Interest

Penal interest differs from regular interest as it arises from the debtor’s
wrongful act of failing to make timely payments. It is a form of penalty, not a
reward, and cannot accumulate over time. Penal interest is based on the doctrine
of penalty rather than restitution, and interest cannot be charged on the penal
interest.
Interest Under the Consumer Protection Act

Although the Consumer Protection Act does not explicitly provide for interest,
the judiciary has consistently referred to Section 34 of the CPC to award interest
in cases where compensation is due. The aim is to ensure fairness and avoid
unjust enrichment. For example, in Rubi (Chandra) Dutta v. United India
Insurance Co. Ltd. (2011), the court awarded interest at 9% per annum from the
date of filing until the final payment was made.

Conclusion

Interest under the Code of Civil Procedure (CPC) is a multifaceted issue, and its
award depends on the circumstances of each case. While pre-lite interest is
more related to substantive law and natural justice, pendent-lite and post-lite
interests are governed by the procedural provisions of the CPC. Additionally,
the courts must exercise discretion, ensuring that interest rates are fair and in
line with legal precedents. Penal interest is distinct from regular interest, acting
as a penalty for default. Ultimately, when granting interest, the courts aim to
balance fairness, equity, and the principles of natural justice.
Question 4. Define 'Costs' under CPC. Explain the different
types of costs awarded by the courts. What principles guide the
imposition of costs in civil suits? Discuss relevant case laws.

ANSWER

Introduction

In civil litigation, “costs” refer to the expenses incurred by parties, such as court
fees, legal representation, and other associated costs. The award of costs is
crucial in balancing the interests of both parties, compensating the successful
party, and discouraging frivolous litigation. In India, the Civil Procedure Code
(CPC), 1908, governs costs under Sections 35, 35A, and 35B. This article
examines the types of costs under the CPC, supported by case laws, and
explores the limitations and possible reforms in the cost framework.

Types of Costs under the Civil Procedure Code

1. General Costs (Section 35):

• Definition: These costs cover the expenses incurred by the successful party in
the litigation process. The general rule is that the losing party pays the costs of
the winning party, although the court can deviate from this principle with valid
reasons.

• Principle: “Costs follow the event.”

• Case Law: In Amarendra Komalam v. Usha Sinha, the court emphasized

transparency in awarding costs and required the reasons to be recorded if costs
are not awarded.

2. Miscellaneous Costs (Order 20A):

• Definition: These are specific costs related to certain litigation activities such
as giving legal notices, obtaining certified copies, or producing witnesses.

• Case Law: In Sanjeev Kumar Jain v. Raghubir Saran Charitable Trust, the
court stressed that miscellaneous costs should reflect the actual expenses
incurred during litigation.
3. Compensatory Costs for False or Vexatious Claims (Section 35A):

• Definition: Awarded when a party brings a false or vexatious claim. The

objective is to deter baseless suits and harassment.

• Case Law: In T. Arivanandan v. T.V. Sathyapal, the court reinforced the

importance of compensatory costs as a deterrent against malicious litigation.

4. Costs for Causing Delay (Section 35B):

• Definition: Penalizes parties that delay the proceedings, either by seeking

unnecessary adjournments or failing to comply with procedural steps.

• Case Law: In Mohammad S. Laiquiddin v. Kamala Devi Misra, the Supreme

Court emphasized the importance of penalizing dilatory tactics to ensure timely
justice.

Analysis of the Costs Provisions

The CPC’s provisions on costs aim to ensure fairness and efficiency, but
challenges remain:

• Nominal Costs: Many cost awards are insufficient to cover the actual expenses
incurred. For example, the ₹3,000 cap on compensatory costs under Section
35A is outdated and inadequate.

• Underutilization: Courts are often reluctant to impose realistic costs, especially

in cases of frivolous or dilatory litigation, weakening the deterrent effect.

Case Law: Salem Advocate Bar Association T.N. v. Union of India highlighted
that the nominal nature of cost awards in India does not adequately compensate
litigants, calling for reforms.
Conclusion

The award of costs under the CPC is essential for promoting fairness and
efficiency in civil litigation. While general, miscellaneous, compensatory, and
delay-related costs serve distinct purposes, the system’s limitations—such as
nominal awards—necessitate reforms. Revising cost caps and encouraging
courts to award more realistic costs would strengthen the framework, deter
abuse, and promote just litigation practices.