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Yashmita Bhalla, Jindal Global Law School

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JUDGMENT, DECREE, COSTS & INTERESTS

Concept-wise key provisions:

 Judgment- Sections 2(9) & 33, Order XX (Rules 1-5A)

 Decree- Sections 2(2) & 33, Order XX (Rules 6-8); Special decrees - Order XX (Rules
6-19); Preliminary & Final Decree: Meaning & Distinction (Example: Order XX Rule
15); Application for copies- Order XX (Rules 6B and 20)
 Costs- Section 35, 35A, 35B; Order XXA
 Interest- Section 34

Judgment & Decree

JUDGMENT:

Definition- Section 2(9)

 Means the statement given by the Judge of the grounds of a decree or order
 Intimated to parties and to the world
 In open court
 Not a secret document

Pronouncement of Judgment: Order XX read with Section 33

Section 33 - The Court, after the case has been heard, shall pronounce judgment, and on
such judgment a decree shall follow.

Relevant Rules

Rule 1 - The Court, after the case has been decided shall pronounce judgment in open
Court either at once or, as soon thereafter as may be practicable, on some future day; and
when the judgment is to be pronounced on some future day, the Court shall fix a day for
that purpose, of which due notice shall be given to the parties or their pleader.

Judge need not read out the whole judgment.

Rule 2 - A judge may pronounce a judgment written by his predecessor.

Rule 3 - Alteration

Judgment has to be dated and signed by the Judge. Once signed, it cannot be altered by the
Court except for:

 Clerical mistakes/typo- Section 152

 Review- Section 114

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Rule 4 - Contents of Judgment

(1) Judgments of a Court of Small Causes need not contain more than the points for
determination and the decision thereon.

(2) Judgments of other Courts—Judgments of other Courts contain:

 a concise statement of the case,

 the points for determination,
 the decision thereon,
 and the reasons for such decision

Rule 5 - Court to state its decision on each issue to the extent it is sufficient for the decision
of the suit.

Rule 5A – In matters subject to appeal, the court is to inform parties, as to where an appeal
lies and about period of limitation for filing it, in cases where parties are not represented
by pleaders.

Amendment of 1976

 Time limit was prescribed for delivery of judgment after the conclusion of the
hearing of the case
 Within 30 days from conclusion
 If not practicable, due to extraordinary situation, then within 60 days of conclusion
 Due notice for date fixed for judgment has to be given to party or pleader
 Deadline not applicable to High Courts

Basis of Judgment

 Based on grounds and points in pleadings/arguments

 Findings on all the points raised by the parties
 Language should be dignified and restrained
 Disparaging and defamatory remarks not to be made
 If party thinks that the proceedings have not been correctly recorded, or there has
been some error, it should approach the same court and the Judge to have it
amended or deleted

Copy of Judgment: Rule 6B

 After a judgment is pronounced, copies of the judgment should be made available to

the parties immediately on payment of charges
 Important for appeal etc.

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Judgment must reflect submissions made by Pleaders/Counsel

 ‘Highly improper’ if arguments are not referred in the judgment

 Necessary because if a particular point is not reflected in the judgment then
superior court will not know that this argument was made in the Court below.
 Authorities cited by counsel (some may be chosen) and reflected in the judgment

JUDGMENT SHOULD BE A SELF CONTAINED DOCUMENT

DECREE:

 Definition
 Section 2(2)

"decree" means the formal expression of an adjudication which, so far as regards the Court
expressing it, conclusively determines the rights of the parties with regard to all or any of
the matters in controversy in the suit and may be either preliminary or final. It shall be
deemed to include the rejection of a plaint and the determination of any question within
Section 144, but shall not include

(a) any adjudication from which an appeal lies as an appeal from an order, or

(b) any order of dismissal for default.

Kinds of Decree

 Preliminary Decree
 Final Decree
 Consent Decree
 Ex-parte Decree etc.

Necessity of a Decree

 Necessary in the ultimate outcome of the suit

 An appeal lies against a decree and not against judgment

Rule 6A

(1) The last paragraph of the judgment shall state in precise terms the relief which has
been granted by such judgment.

Every endeavour shall be made to ensure that the decree is drawn up as expeditiously as
possible, and, in any case, within fifteen days from the date on which the judgment is
pronounced; but where the decree is not drawn up within the time aforesaid, the Court
shall if requested so to do by a party desirous of appealing against the decree, certify that

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the decree has not been drawn up and indicate in the certificate the reasons for the delay,
and thereupon—

an appeal may be preferred against the decree without filing a copy of the decree and in
such a case part of the judgment shall be treated as the decree; and

Contents of Decree – Rule 6

The decree shall agree with the judgment;

It shall contain:

 the number of the suit,

 the names and descriptions of the parties,
 their registered addresses,
 and particulars of the claim and
 shall specify clearly the relief granted or other determination of the suit.
 the amount of costs incurred in the suit, and by whom or out of what property and
in what proportions such costs are to be paid.

Decree in certain special cases – Rules 9-19

Decree for recovery of immovable property— Where the subject-matter of the suit is
immovable property, the decree shall contain a description of such property sufficient to
identify the same, and where such property can be identified by boundaries or by numbers
in a record of settlement or survey, the decree shall specify such boundaries or numbers.

Another example: Preliminary and Final Decree

15 . Decree in suit for dissolution of partnership— Where a suit is for the dissolution of
partnership, or the taking of partnership accounts, the Court, before passing a final decree,
may pass a preliminary decree declaring the proportionate shares of the parties, fixing the
day on which the partnership shall stand dissolved or be deemed to have been dissolved,
and directing such accounts to be taken, and other acts to be done, as it thinks fit.

Costs & Interest

COSTS:

 Discretion of the Court- who and how much?

 Costs follow the event.

KINDS:

1. General costs

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2. Miscellaneous costs
3. Compensatory costs/Exemplary-Punitive costs
4. Costs for causing delay

General Costs – Section 35

Object- to secure the expenses incurred by a party in litigation

No for making profit out of it or use it for punishing a party

Cost follows event- means costs go to the successful party

LOSER PAYS! (If court does not follow it-then reasons must be given)

But Court may not award costs (discretionary) for example when the Court did not like the
conduct of the Party

Miscellaneous Costs – Order XXA

Specific provision – Power of Court to grant costs for specific expenses:

 Giving notice, typing charges, inspection of goods, producing witness, obtaining

copies
 Exhaustive list in the order

Compensatory Costs – Section 35A

 May be better described as Exemplory or punitive

 Exception to the Rule u/s 35 (where cost only indemnifies)
 Here it is not compensation but a punishment

Conditions

1. Claim or defence must be false or vexatious.

2. Objection must have been taken by the opposite party about 1.
3. Claim must have been disallowed or withdrawn or abandoned.

Maximum amount – Rs. 3000.

This does not affect any other costs

No appeal if costs imposed (only revision) but appeal lies if no costs

Costs for Delay – Section 35B

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 Added by amendment of 1976 (to stop delays)

 To check delaying tactics
 This may be imposed irrespective of outcome of litigation
 Amount and deadline as per discretion of court
 May be given to opposite party, bar association or kept by Court

INTEREST:

 Meaning- charge on money borrowed.

 Like mesne profits for money

Award of interest:

 As per discretion of Court

 Practical- party wants 18-24 percent but generally gets prevailing rate of interest

Kinds of interest:

1. Prior to filing of suit

2. Pendent lite- from date of institution of suit to the date of decree
3. Interest from date of decree till payment (execution)

1. Interest prior to suit

 CPC has no application

 It is a matter of substantive right
 Awarded when there is agreement, usage, statutory provision etc.

2. Interest Pendent Lite

 Discretion of the Court

 Sound judicial principle must be applied
 Court decides to rate- generally contractual rate itself

3. Interest from date of Decree

 Discretion of court
 Provision to sec 34- empowers Court to grant further interest at rate exceeding 6
percent but not exceeding contractual rate
 Court generally grants running rate of interest

Example:

 Date of money due- 30/05/17

 Date of institution of Suit-30/05/18

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 Date of decree-5/08/19
 Date of payment-04/10/19

Contractual rate- 7%

Bank rate-6.2%

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enrolled in this course – not for circulation. Unauthorized reproduction,
distribution, or use is strictly prohibited.