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.
