Payment of interest in equity in India

Unjust enrichment by withholding the amount can be compensated by award of Interest:

Effect of Interest Act

Interest can be awarded in terms of an agreement or statutory provisions. It can also be awarded by reason of usage or trade having the force of law or on equitable considerations. Interest cannot be awarded by way of damages except in cases where money due is wrongfully withheld and there are equitable grounds therefore, for which a written demand is mandatory.

Clariant International Limited and Another v. Securities and Exchange Board of India, (2004) 8 SCC 524 at 539

When there is no specific provision for grant of interest on any amount due, the court and even tribunals have been held to be entitled to award interest in their discretion, under the provisions of Section 3 of the Interest Act and Section 34 of the Civil Procedure Code. Continue reading “Payment of interest in equity in India”