Report No. 63
1.4. Narrow limits.-
It will be apparent from the detailed discussion1 of section 1 that follows later in this Report, that the Act keeps the right to interest within narrow limits. One reason for this approach is historical.2 It can also be thought that the right to claim interest was kept within narrow limits in order to induce the creditor to take a prompt action to file a suit. It is well-known that once a suit is instituted,3 the discretion of the court to award interest is wider than that conferred by the Interest Act.
1. See Chapter 3, infra.
2. See discussion relating to usury; Chapter 2, infra.
3. Section 34, Code of Civil Procedure, 1908.