https://www.taxtmi.com/caselaws?id=106848 Section 34 of the Code of Civil Procedure uses "principal sum adjudged" and "such principal sum" to include not only the original loan but also interest that has been capitalised under the contract or a settled banking practice and has merged into principal. Interest so capitalised may therefore bear pendente lite and future interest. The 1956 amendment was understood to bar interest on interest adjudged as such, but not to exclude amounts already merged into principal by capitalisation. Penal interest cannot be capitalised, and any contractual or banking practice remains subject to overriding statutory provisions and RBI directions. en-us Thu, 18 Oct 2001 00:00:00 +0530 Thu, 02 Oct 2025 11:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106848 Section 34 of the Code of Civil Procedure uses "principal sum adjudged" and "such principal sum" to include not only the original loan but also interest that has been capitalised under the contract or a settled banking practice and has merged into principal. Interest so capitalised may therefore bear pendente lite and future interest. The 1956 amendment was understood to bar interest on interest adjudged as such, but not to exclude amounts already merged into principal by capitalisation. Penal interest cannot be capitalised, and any contractual or banking practice remains subject to overriding statutory provisions and RBI directions. Case-Laws Indian Laws Thu, 18 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106848