Section 15th in The Navy (Pay And Allowances) Regulations, 1966
15th. of every month in favour of the Controller of Defence Account (Navy), Bombay, in whose book the accounts of the advance in question are kept. A written under taking shall be obtained from the officer to this effect and from the office to which he is attached abroad. If the draft is not received by the Controller of Defence Accounts
(Navy), Bombay, before the end of the month, he should immediately report the matter for further necessary action to the administrative officer concerned and also to the office abroad where the officer is working. Failure on the part of the officer concerned to remit the bank draft by the due date shall constitute default and render him liable draft by the due date shall constitute default and render him liable to pay penal rate of compound interest in terms of rule 161 of the General Financial Rules, 1963. On return of the officer to India any amount left unrecovered shall be deducted as before from his monthly pay bills by the Controller of Defence Accounts (Navy),Bombay.(6)If an individual retains the advance without purchasing a conveyance beyond the period of one month, in contravention of the provisions of regulation 240, normal rate of interest shall he charged for the first month and for the period in excess of one month penal rate of interest shall he charged in the following manner, namely:(a)The period of one month prescribed by sub-regulation (2) of regulation 240 shall he a calendar month from the date of the drawal of advance.(b)The penal rate of interest shall be calculated on the balance outstanding for the actual period in excess of first month (including fraction of a month) and not on monthly balances.(c)The penal rate of interest shall be calculated in the manner prescribed in paragraph 243 (2) of General Financial Regulations, Volume 1.(d)When the period of one month prescribed under sub-regulation (2) of regulation 240 is extended by the sanctioning authority, the penal rate shall be charged with effect from the date following that on which the extended period expires.(dd)[ the penal rate of interest shall be the compound rate of interest and it would as merged with the principal at monthly intervals for the purpose of calculation of future rate of interest for the subsequent periods.] [Inserted by S.R.O. 9-E, dated 19th March, 1974](e)The following example shall illustrate the procedure to be followed, namely.-'A' was sanctioned an advance of Rs. 12,000 on 30th August, 1900 repayable in sixty monthly instalments of Rs. 200 each. He refunded Rs. 200 each on 1st September,1960 and 1st October, 1960. The interest shall be charged as under:
