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Report No. 63

4.22. Savings recommended for two cases-(a) interest payable as of right by agreement or otherwise; (b) bill of exchange.-

This concludes consideration of the question of claims for interest. We now come to other points concerning section 1. While revising section 1, it should be made clear that-

(a) nothing in this section shall apply in relation to any debt upon which interest is payable as of right by virtue of any agreement, and

(b) nothing in this section shall affect the compensation, recoverable for the dishonour of a bill of exchange, promissory note or cheque.

The reason for such a savings clause is obvious. In the first case, the agreement must prevail.1 In the second case, the special provision of the Negotiable Instruments Act regarding compensation for dishonour prevails.2

1. As to provisions of other law, see discussion relating to section 1, proviso.

2. E.g., see the Negotiable Instruments Act, 1882, sections 30, 31, 79, 80 and 117.

Interest Act, 1839 Back

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