Interest when no rate specified
Full Text
Interest when no rate specified.—When no rate of interest is specified in the instrument, interest on the amount due thereon shall, notwithstanding any agreement relating to interest between any parties to the instrument, be calculated at the rate of eighteen per centum per annum, from the date at which the same ought to have been paid by the party charged, until tender or realization of the amount due thereon, or until such date after the institution of a suit to recover such amount as the Court directs.
Explanation.—When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only from the time that he receives notice of the dishonour.
Plain English Summary
Directs that if no interest rate is specified in the instrument, interest is calculated at a statutory rate of 18% per annum from the due date until realization.
Key Legal Elements
- Applies when no interest rate is written in the instrument
- Sets a statutory rate of 18% per annum on the amount due
- Calculated from the date the instrument ought to have been paid
- For endorsers, interest runs only from the date they receive notice of dishonour
Practical Note
Statutory interest rate of 18% per annum. In cheque bounce or recovery suits, if the cheque or note does not mention interest, the holder is legally entitled to claim 18% p.a. interest from the date the cheque ought to have been paid. For endorsers, it runs only from notice of dishonour.
हिंदी पाठ
ब्याज जब कोई दर निर्दिष्ट न हो।—जब लिखत में ब्याज की कोई दर निर्दिष्ट नहीं होती है, तो उस पर देय राशि पर ब्याज की गणना, लिखत के पक्षों के बीच ब्याज से संबंधित किसी भी समझौते के होते हुए भी, 18 प्रतिशत प्रति वर्ष की दर से उस तारीख से की जाएगी जिस तारीख को उत्तरदायी पक्ष द्वारा उसका भुगतान किया जाना चाहिए था, जब तक कि ऐसी राशि की निविदा (tender) या वसूली न हो जाए, अथवा ऐसी राशि की वसूली के लिए मुकदमा दायर करने के बाद न्यायालय द्वारा निर्देशित तिथि तक।
स्पष्टीकरण।—जब उत्तरदायी बनाया गया पक्षकार गैर-भुगतान द्वारा अनादृत लिखत का पृष्ठांकक (indorser) हो, तो वह केवल उसी समय से ब्याज का भुगतान करने के लिए उत्तरदायी होगा जब उसे अनादर की सूचना प्राप्त होती है।