Report No. 63
6.4. Date of commencement of running of interest.-
As regards the date of commencement of the running of interest, the present law, in substance, is, that interest is to commence from the time when the debt or sum certain is payable by virtue of a written instrument; or, if the debt or sum certain is "otherwise" payable, then from the time mentioned in a written demand. The word "otherwise" has come up for judicial construction.1 It has been held2 that where the principal sum is not payable at a certain time, interest till such sum is payable from the date of the written demand, referred to in the section.
1. See also discussion as to the amount on which interest can be awarded.
2. Province of West Bengal v. Basant Properties, AIR 1965 Cal 36.