Section 2 of The Interest Act, 1978 : Section 2: Definitions

Explanation using Example

Imagine a scenario where Raj, a contractor, has completed construction work for Sunita, but she has delayed payment beyond the agreed date. Raj decides to take legal action to recover the debt and includes a claim for interest on the overdue amount. Here's how the Interest Act, 1978, applies:

• Raj files a lawsuit in a tribunal, which is considered a "court" as per Section 2(a) of the Act, so the tribunal has the authority to deal with the case.
• The "current rate of interest" that Raj can clai...

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