Interest when rate specified
Full Text
Interest when rate specified.—When interest at a specified rate is expressly made payable on a promissory note or bill of exchange, interest shall be calculated at the rate specified, on the amount of the principal money due thereon, from the date of the instrument, until tender or realization of such amount, or until such date after the institution of a suit to recover such amount as the Court directs.
Plain English Summary
Directs that if a specific interest rate is written on a promissory note or bill of exchange, interest is calculated at that rate from the instrument's date until payment or court-directed date.
Key Legal Elements
- Applies when interest rate is explicitly specified in a promissory note or bill of exchange
- Interest must be calculated at the specified rate from the date of the instrument
- Continues until tender, realization, or a date directed by the court post-suit
Practical Note
Governs interest calculations in legal suits. Courts are bound to award interest at the agreed-upon contract rate from the date of the instrument until the date of filing the suit. For the period after filing, the court has discretion under CPC Section 34, but Section 79 mandates the contract rate up to filing.
हिंदी पाठ
ब्याज जब दर निर्दिष्ट हो।—जब किसी वचन-पत्र या विनिमय-पत्र पर विनिर्दिष्ट दर से ब्याज स्पष्ट रूप से देय बनाया गया हो, तो ब्याज की गणना विनिर्दिष्ट दर पर, उस पर देय मूल राशि पर, लिखत की तारीख से लेकर ऐसी राशि के निविदा (tender) या वसूली (realization) तक, अथवा ऐसी राशि की वसूली के लिए मुकदमा दायर करने के बाद न्यायालय द्वारा निर्देशित तिथि तक की जाएगी।