Interest on deposit not allowed to plaintiff after notice
Full Text
No interest shall be allowed to the plaintiff on any sum deposited by the defendant from the date of the receipt of such notice, whether the sum deposited is in full of the claim or falls short thereof.
Plain English Summary
Terminates the plaintiff's entitlement to interest on the deposited sum from the date of receipt of the deposit notice, operating pro tanto even if the deposit represents only a partial payment of the overall claim.
Key Legal Elements
- Absolute Statutory Bar on Post-Notice Interest: Interest freezes completely on the deposited quantum.
- Starting Point: Calculated strictly from the date of receipt of notice by plaintiff/pleader.
- Applies to Partial Deposits: 'Whether the sum deposited is in full of the claim or falls short thereof'.
- Appropriation Rule: Does not prevent plaintiff from appropriating deposit towards accrued interest first, but stops fresh accrual.
Practical Note
Stopping Decretal Interest via Partial Deposit: 1. Landmark Authorities - Gurpreet Singh v. Union of India (2006) 8 SCC 457 (Constitution Bench) & Meghraj v. Bayabai (1969) 2 SCC 274: Even if the defendant cannot pay the full claim, depositing a substantial part under Rule 1 and serving notice under Rule 2 stops interest on that portion from the date of service of notice. The plaintiff cannot refuse the deposit and continue to claim interest on the whole amount. 2. Drafting Advice: State clearly in the deposit memo that the sum is tendered under Order XXIV Rule 1 CPC to ensure automatic invocation of Rule 3.
हिंदी पाठ
प्रतिवादी द्वारा जमा की गई किसी भी राशि पर ऐसी सूचना की प्राप्ति की तारीख से वादी को कोई ब्याज (No interest) नहीं दिया जाएगा, चाहे जमा की गई राशि दावे की पूर्ण तुष्टि करती हो या उससे कम (Falls short thereof) ही क्यों न हो।