intrest rate per anum in intrest act

I N T E R E S T (Important case law on Section 34 of Civil Procedure Code,1908)

Interest is generally reduced in writing at the time of the money is loaned. The word ‘interest’ is basically two types. One is legal. Another is conventional. It is a comprehensive term to describe any claim or right or privilege of an individual. Legal interest is prescribed by statute. Conventional interest is interest at a rate that has been set and agreed upon by the partiesthemselves without outside intervention.

Rate of interest :-
M.Rajeswar Rao & others. Vs.Chitluri Satyam (Died) & others (2013) observed that from steep fall in bank lending rate of interest, the reduction from 24% to 12% interest awarded by the Court from date of suit to date of decree is since just and reasonable, there is nothing to interfere. However, insofar as post lite interest from date of decree till realization concerned, from the transaction is a commercial one within the meaning of Section 34 C.P.C. and the rate of interest can be charged above 6% p.a. and there are no special reasons given by the appellate Court even to reduce to 6% p.a. though for pendent lite fixed at 12% p.a. and from the several expressions referred indicate the rate of interest awarded after decree at 9% to 12% is reasonable in such lending and there is no reason to reduce from 12% that is what the rate of interest awarded for pendent-lite, the same rate is just to award in the commercial transaction for post-lite also within the discretionary power of the appellate court

Hi.thanx for the information. But we are reciving the amount as exgratia from the government.court ordered 6 percent per annum as penality for the delay. How can they still delay in payment saying it cant be paid as there is no 6 percebt rule.. There are instances where intresy is paid at 12 or 15 percent rate.thats what they show as reason.