Code of Civil Procedure, 1908 — Section 34A: Interest on public dues

1[34A. Interest on public dues.__ (1) Where the Court is of opinion that a suit was instituted with intent to avoid the payment of any public dues payable by the plaintiff or on his behalf, the Court may, while dismissing such suit, make an order for payment of interest on such public dues at the rate of two per cent, above the prevailing bank rate.

(2)Where the court is of opinion that the recovery of any public dues from the plaintiff was unjustified, the Court may, while disposing of the suit, make an order for payment of interest on the amount recovered at the rate of two per cent, above the prevailing bank rate. Explanation.__ In this section,

(a)“bank rate” means the bank rate determined and made public under the provisions of the State Bank of Pakistan Act, 1956 (XXXIII of 1956) ; and

(b)“public dues” includes the dues of any bank owned by the Federal Government or of any corporation or undertaking owned or controlled by the Federal Government or a Provincial Government or of any local authority.] Interest, etc. on dues of banking company.__ Where and in so far as a decree is 2[34B. for payment of money due to a banking company in repayment of a loan advanced by it, the Court shall, in the decree, provide for interest or return, as the case may be, on the judgment debt from the date of decree till payment

(a)in the case of interest-bearing loans, for interest at the contracted rate or at the rate of two per cent above the bank rate, whichever is the higher ;

(b)in the case of loans given on the basis of mark-up in price, lease, hire-purchase or service charges, for the contracted rate of mark-up, rental, hire or service charges, as the case may be, or at the latest rate of the banking company for similar loans, whichever is the higher ; and

(c)in the case of loans given on the basis of participation in profit and loss, for return at such rate, not being less than the annual rate of profit for the preceding six months paid by the banking company on term deposits of six months accepted by it on the basis of participation in profit and loss, as the court may consider just and reasonable in the circumstances of the case, keeping in view 1 New section 34A was ins. by the Code of Civil Procedure (Amdt.) Ordinance, No. X of 1980) s.3. 2 Section 34B ins. by the Code of Civil Procedure (Amdt.) Ordinance, No. LXIII of 1980, s. 2. the profit-sharing agreement entered into between the banking company and the judgement debtor when the loan was contracted. Explanation.__ In this section in clause (a), “bank rate” has the same meaning as in section 34A.]. COSTS