Report No. 63
4.2. Conditions to be fulfilled.-
In Thawardas v. Union of India, AIR 1955 SC 468, para. 30: (1955) 2 SCR 48. Sinha J., analysing the conditions for award of interest, stated-"the following among other conditions must be fulfilled before interest can be awarded under the Act:
(1) there must be a debt or a sum certain;
(2) it must be payable at a certain time or otherwise;
(3) these debts or sums must be payable by virtue of some written contract at a certain time;
(4) there must have been a demand in writing stating that interest will be demanded from the date of the demand."
It may be pointed out, however, that conditions (3) and (4) formulated by Sinha J.1 are alternative to each other, and cannot apply together. There should either be a written instrument fixing a certain time or a written demand. We shall have occasion to consider these aspects in detail later.2
1. Thawardas v. Union of India, AIR 1955 SC 468, para. 30: (1955) 2 SCR 48.
2. Chapter 5, infra.