Report No. 110
45.9. Section 353-Rate of Interest.-
Section 353 reads as under:-
"353. The rate of interest shall be four per cent per annum in all cases except when the testator was Hindu, Muhammadan, Buddhist, Sikh or Jain or an exempted person, in which case it shall be six per cent per annum."
45.10. Recommendation to revise section 353.-
The rates of interest laid down at present-four per cent. and six per cent respectively-need to be revised in the light of present day conditions. The rate now should be uniform and at least twelve per cent in every case. Power may be given to the court to fix a different rate for special reasons, to be recorded. We recommend that section 353 should be revised accordingly. The following is a suggested redraft of section 353:
"353. The rate of interest shall be twelve per cent per annum in all cases, except when the court, for special reasons to be recorded, fixes a different rate."