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Indian law as of 8 November 2026. Under section 34(1) of the Code of Civil Procedure, 1908, what is the…

The ordinary ceiling on post-decree interest under section 34(1) is six percent per year. For a commercial liability, the proviso can allow a higher rate within the…

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Indian law as of 8 November 2026.

Under section 34(1) of the Code of Civil Procedure, 1908, what is the maximum annual rate of interest that a court may award on the principal sum adjudged from the date of a money decree when the liability did not arise from a commercial transaction?

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Answer and explanation

Correct answer C

The ordinary ceiling on post-decree interest under section 34(1) is six percent per year. For a commercial liability, the proviso can allow a higher rate within the specified contractual or bank lending limit.

Option feedback

Option A

Nine percent exceeds the ceiling for the non-commercial liability described.

Option B

Ten percent exceeds the ceiling for the non-commercial liability described.

Option C

Section 34(1) caps this post-decree interest at six percent per year.

Option D

Twelve percent exceeds the ceiling for the non-commercial liability described.

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