In the absence of any specified rate, should be 18% per annum as provided in Section 80 of the Negotiable Instruments Act, 1881.
As to interest, I find that no rate of interest was specified in the bills of exchange concerned. The cheques were dishonoured. So in view of Section 80 of the Negotiable Instruments Act, 1881 defendant 1 should, of course, be held liable to pay Interest at the rate of 18% per annum from the time it received the notices of dishonour. But there is no material on record from which such time can be ascertained. The liability was however, admitted by defendant 1 in its letter dated Sept. 7th. 1998. Hence in my view defendant 1 should be held liable to pay interest from this date, and the rate, in the absence of any specified rate, should be 18% per annum as provided in Section 80 of the Negotiable Instruments Act, 1881.
Calcutta High Court
Uic Finance Pvt. Ltd. vs Carews Pharmaceuticals Pvt. Ltd. ... on 2 December, 2003
Equivalent citations: AIR 2004 Cal 68, IV (2004) BC 471
