Interest amount is added to the due amount in security cheque.

Rajat sahotra (Querist) 28 April 2013 This query is : Resolved
A supplied material to B on cash credit basis. After a period of time B stopped purchasing material and the payments become due towards B.

A wrote emails sending account statement to B for payment and charged interest per annum on long due payments.

A cheque issued as security by B was filled by A and presented for encashment which bounced saying "PAYMENT STOPPED'.

Notice of Demand issued but it was not mentioned that the cheque amount is along with interest amount.

Now complaint is to be filed.
Whether in complaint it has to be explained that the cheque amount is along with the interest amount?

Whether interest amount is recoverable by A from B?

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Arun Kumar Bhagat (Expert) 28 April 2013
Yes, recoverable.

Devajyoti Barman (Expert) 28 April 2013
Interest is indeed recoverable.

Raj Kumar Makkad (Expert) 29 April 2013
If the term of the interest is the part of the purchase order or agreement then definitely the same is recoverable and the same has already been inserted in the cheque amount.

Rajat sahotra (Querist) 29 April 2013
It was verbally agreed between A & B and the statement along with interest charged was sent to B by A through Email and to which B never gave reply.

But in his notice reply he rebutted that heavy interests has been charged.

Raj Kumar Makkad (Expert) 29 April 2013
As the matter of interest had already been discussed by way of emails so the amount of interest inclusion in the cheque is justified

prabhakar singh (Expert) 29 April 2013
The basis of charging 'interest' is always subject to an agreement which may be in writing or oral too.In cases where initially no agreement as interest was arrived at,interest as damages can be charged serving notice but the same would be effective from the date of the notice.One should analyse facts in hand accordingly.

Rajat sahotra (Querist) 29 April 2013
Prabhakar Sir,

no notice was served on B to charge interest as damages by A. Just an email with account statements and interest charged upon for delay in payment was mentioned. B did not replied the said mail.

What would be the effect of non serving of notice for charging interest as damages on the complaint filed by A?

prabhakar singh (Expert) 29 April 2013
B ought to have contradicted email which B did not.Now much shall depend upon how the two sides handle the case to develop the point of notice.A may say his email showing charging of interest amounts to notice also
as the same was not opposed by B.