How much % rate of interest is granted by indian court, in case of "summary suit" ?

Querist : Anonymous (Querist) 04 January 2012 This query is : Resolved
Sir/ Maam,

I would like to know that, how much % Rate of Interest is granted by a court, in case of Summary suit if :

1.) The payment is not made for 5 yrs.
2.) In the contract, it is expressly mentioned that Payment will be made in 30 days.
3.) No mention of the Late Payment Charges is made in the contract.
4.) There is no remark stated in the invoice, regarding "Interest will be charged after due date."

Also, Whether Can Court grant compounded Interest, (If claim is made for compounded interest by plaintiff in the court) if yes, how much in the above circumstances ?

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ajay sethi (Expert) 04 January 2012
no compound interest will be awarded. court will award simple interest .

in your case the contract is silent about rate of interest to be charged in case of late payments .

whether any legal notice issued ?does notice mention on event of failure to make payment interest would be charged?

court will award interest from date of filing of suit till payment at around 9%

Advocate Bhartesh goyal (Expert) 04 January 2012
However there exists no condition regarding interest in contract even then court can grant simple interst 6% p.a from the date of filing of suit.

Deepak Nair (Expert) 04 January 2012
Notmally the court grants simple interest at the rate of 6%.

M/s. Y-not legal services (Expert) 04 January 2012
here also court granting 9% only..

tom..

prabhakar singh (Expert) 04 January 2012
six percent unless there is agreement between parties above it.

Raj Kumar Makkad (Expert) 08 January 2012
generally rate of interest in these days is awarded 6% by courts.

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