Now you a Interest on friendly loan also.
Mumbai High Court bench, Justice B H Marlapalle and D B Bhosale said while ruling one such case, "people who default on friendly loans should be treated in there stages while determining the rate of interest".
Mumbai High Court bench, Justice B H Marlapalle and D B Bhosale said while ruling one such case, "people who default on friendly loans should be treated in there stages while determining the rate of interest".
- No interest is applicable from the day the loan was given to the day the lender approached to the court to recover it.
- 9% of interest should be paid for the period the suit remained pending in the court.
- 6% of interest was to be paid from the day of the court decree to the day the loan amount was finally realized.
Court also said that while dealing such matters, judges should "exercise sound judicial principles". The bench said judges could even deny or reduce the rate of interest to the time the matter was pending in court. Court also warned that doing so would only, amount to penalising the creditor for approaching the court and encouraging the debtor deliberately to prolong the litigation.
