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1 - 4 of 4 (0.45 seconds)The Indian Contract Act, 1872
Bengal Nagpur Railway Company Limited vs Ruttanji Ramji on 20 December, 1937
There remains the question of interest. Interest for a
period prior to the commencement of suit is claim. able
either under an agreement, or usage of trade or under a
statutory provision or under the Interest Act, for a sum
certain where notice is given. Interest is also awarded in
some cases by Courts of equity. (Bengal Nagpur Railway Co.
Ltd. v. Ruttanji Ramji (1)). In the present case no
agreement about interest was made, nor was it implied: The
notice which was given did not specify the sum which was
demanded, and, therefore, the Interest Act does not apply.
The present case also does not fall within those cases in
which Courts of equity grant interest. Learned counsel for
Durga Datt claimed interest as damages; but it is well-
settled that interest as damages cannot be awarded.
Interest up to date of suit, therefore, was not claimable,
and a deduction shall be made of such interest from the
amount decreed. As regards interest pendente lite until the
date of realisation, such interest was within the discretion
of the Court. The rate fixed is 6 per cent. which, in the
circumstances and according to the practice of Courts,
appears high. Interest ,shall be calculated at 4 percent.
per annum instead of at 6 per cent., and the decree shall be
modified accordingly.
Section 55 in The Indian Contract Act, 1872 [Entire Act]
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