Section 5 in The Interest On Delayed Payments To Small Scale And Ancillary Industrial Undertakings Act, 1993
5. Liability of buyer to pay compound interest
.-Notwithstanding anything contained in any agreement between a supplier and a buyer or in any law for the time being in force, the buyer shall be liable to pay compound interest (with monthly interests) at the rate mentioned in section 4 on the amount due to the supplier.
