Section 6 of The Interest Act, 1978 : Section 6: Repeal And Saving

Explanation using Example

Imagine a scenario where a company, ABC Corp, filed a lawsuit against XYZ Ltd. in 1977 for non-payment of goods delivered, demanding both the principal amount and interest on the overdue payment. The case was based on the Interest Act of 1839, which was the law in force at that time.

However, in 1978, the new Interest Act came into force, repealing the Interest Act of 1839. According to Section 6(1) of the new Interest Act, 1978, the old act is repealed.

Despite this repeal, as per Section 6(2) of the new Act, the ongoing lawsuit by ABC Corp. will not be affected by the new law. The provisions of the Interest Act of 1839 will continue to apply to this case, as it was filed before the commencement of the new Act.

Moreover, Section 6(3) clarifies that the specific mention of ongoing lawsuits in Section 6(2) does not undermine the general principles regarding the effects of repeals as stated in the General Clauses Act, 1897.