Supreme Court explains distinction between the “sum adjudged” and the “principal sum adjudged

 On the basis of this judgment, the distinction is that “sum adjudged” may mean the whole amount adjudicated as payable, while “principal sum adjudged” means only the principal amount adjudged, excluding the interest component unless there is a specific legal basis to merge it into principal.

Meaning of “sum adjudged”

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

SPECIAL LEAVE PETITION (CIVIL) NO.812 OF 2014

M/S D. KHOSLA AND COMPANY  Vs THE UNION OF INDIA

Citation: 2024 INSC 587

Read full judgment here: Click here.

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Principal Sum Adjudged and Three Stages of Interest Under Section 34 CPC

 In money decrees, one of the most important questions is: what exactly is the principal sum adjudged, and how is interest calculated before the suit, during the pendency of the suit, and after the decree. Under Section 34 of the Code of Civil Procedure, this distinction is crucial because the court does not treat all kinds of interest in the same manner.

For district judge interview purposes, the concept should be understood in three parts: first, the meaning of principal sum adjudged; second, the three stages of interest; and third, the leading case law explaining the doctrine.

Meaning of principal sum adjudged

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