Report No. 63
Summary of Recommendations
We have concluded our consideration of the Act. We summarise below the recommendations made by us in various Chapters of this Report.
(1) The preamble to the Act should be deleted.1
(2) The territorial extent of the Act should be widened so as to cover2the whole of India, except the State of Jammu & Kashmir.
(3) The Act should be so re-drafted as to ensure that it applies also to proceedings other than civil suits.3
(4) A written4 instrument should not be necessary before interest can be claimed under the Act, if the other conditions are satisfied.
(5) The Act should be re-drafted to make it clear that it applies even where a suit merely for interest is filed.5
(6) The Act should not apply to-
(a) cases where the right to interest is separately conferred by law or contract, or
(b) interest on dishonour of a bill of exchange,6 promissory note or cheque.
(7) The Act should not apply where interest is prohibited by an express agreement.7
(8) Interest' under the Act should be awardable on damages also.8
(8A) "Debt" should be defined in terms of an ascertained sum of money.9
(9) It should be made clear that debts payable, in kind are also within the Ac t.10
(10) The expression "sum certain" should be deleted.11
(11) For damages for death or personal injury award of interest should be mandatory, unless there are reasons to the contrary. 12
(12) Interest on claims for dower or maintenance should be specifically provided for.13
(13) Interest on deposits required by law or contract should be specifically provided for.14
(14) Interest on money or property obtained or retained by fraud should be specifically provided for.15
(15) Interest should be specifically provided for where there is a fiduciary relationship.16
1. Para. 2B.1, supra.
2. Para. 3.5, supra.
3. Para. 4.4, supra.
4. Para. 4.6, supra.
5. Paras. 4.21 and 4.22, supra.
6. Para. 4.22, supra.
7. Para. 4.23, supra.
8. Para. 5.2, supra.
9. Para. 5.2A, supra.
10. Para. 5.9, supra.
11. Para. 5.12, supra.
12. Para. 5.13, supra.
13. Para. 7.12, supra.
14. Para. 7.9, supra.
15. Para. 7.10, supra.
16. Para. 7.8, supra.