M/S. Shakti Tubes Ltd vs State Of Bihar & Ors

The Supreme Court addressed the appeal concerning the interest rate awarded in a money suit under the Indian Contract Act. The trial court had granted 24% interest per annum on a decreetal amount of Rs. 38,13,480/-, which was reduced to 9% by the Patna High Court. The Supreme Court held that the interest rate should reflect the prevailing market rates and the terms of the contract, thereby reinstating the trial court's decision for 24% interest, affirming the principle that contractual obligations must be honored as per agreed terms.