money suit

Querist : Anonymous (Querist) 09 September 2010 This query is : Resolved
"A" borrowed an amount of Rs 1,00,000/-(one laks )only with the rate of interest 10% per month untill the re payment of the credited amount from "B". for the last 18 month "A" is not retuning the money and says that court would not accept the rate of interest(10% per mpnth) so better wasting money in court settle it out side the cout and charge interest rate as per annum. is it correct that the creditor wont get the agreed rate of interest.is there any norm in indian law to regulate the rate of interest in private/personal money borrowing case/matter

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s.subramanian (Expert) 09 September 2010

According to mercantile practice and convention followed in Indian courts it is 6% p.a.

Rajeev kulshreshtha (Expert) 09 September 2010
IN MY OPINION IF THERE IS RATE OF INTEREST IS AGREED THROUGH WRITTEN AGREEMENT THAN THE PERSON IS LIABLE TO PAY SUCH INTEREST RATE TILL THE FILING OF SUIT. AFTER THE FILING OF SUIT THE COURT CAN GRANT INTEREST ACCORDING TO SECTION 34 CPC.

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