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In the case of Sir Srinivas Co. v. Firm VDHA Sethi an Andhra Pradesh case lays down which of the following propositions as regards interest for the post decretal period?
I. Where loan is a commercial transaction, even if there is no contract for payment of interest, interest can be allowed for the post-decretal period
II. In such a transaction, the proviso to s. 34 enables the court to award interest at the rate currently allowed by nationalised banks on deposits
III. But the claimant must adduce acceptable evidence as to the current rate so allowable by banks
IV. In the absence of such evidence, the court can allow reasonable rate of interest
V. In the particular case, award (by the trial court) of in¬terest at the rate of 12 percent per annum for the post- decretal period was held not to be wrong or incorrect
I, III
II, IV
IV, V
All of these
- I. Courts can permit post-decretal interest on commercial loans even without a contract.
- II. Courts can award interest based on national bank rates according to s. 34's proviso.
- III. Claimants need evidence of current bank rates.
- IV. Without evidence, courts can assign a reasonable interest rate.
- V. 12% interest in this case was deemed appropriate.
Option Analysis:
1. I, III is partial, lacking full context.
2. II, IV misses some points.
3. IV, V only covers part of the reasoning.
4. ? All statements apply to this case.
By: santosh ProfileResourcesReport error
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