Rate of interest on difference of salary paid after 7 years.

Refer the high court order it might have mentioned the rate of interest.

Thanks Adv. Rajeevji,

 

But High Court has not mentioned any thing in respect of Rate of Interest in the Order. I just want to know if there is any laid down Rule in this respect legally.

You should included the interest damages etc in your paryer to HC.

Interest on delayed payment on Difference of Salary, Gratuity, Leave Encashment and CPF is not fixed one, that's why it is the Court to decide depending upon number of factors including claim and presentation of the case by your counsel.

please read Payment of Interest Act 1978

 

Section 2:-

a) "Court" includes a tribunal and an arbitrator;

 

(b) "Current rate of interest" means the highest of the maximum rates at which interest may be paid on different classes of deposits (other than those maintained by charitable or religious institutions) by different classes of scheduled banks in accordance with the directions given or issued to banking companies generally by the Reserve Bank of India under the Banking Regulation Act, 1949 (10 of 1949).

 

Explanation. -In this clause," scheduled bank," means a bank, not being a co-operative bank, transacting any business authorised by the Banking Regulation Act, 1949 (10 of 1949);

 

(c) "Debt" means by liability for an ascertained sum of money and includes a debt payable in kind, but does not include a judgment debt;

 

(d) "Personal injuries" includes any disease and any impairment of a person physical or mental condition;

 

(e) All other words and expressions used herein but not defined and defined in the Reserve Bank of India Act, (2 of 1934), shall have the meanings respectively assigned to them in that Act.

3. Power of court to allow interested.

 

(1) In any proceedings for the recovery of any debt or damages or in any proceedings in which a claim for interest in respect of' any debt or damages already paid is made, the court may, if it thinks fit, allow interest to the person entitled to the debt or damages or to the person making such claim, as the case may be, at a rate not exceeding the current rate of interest, for the whole or part of the following period, that is to say, -

 

(a) If the proceedings relate to a debt payable by virtue of written instrument at a certain time, then, from the date when the debt is payable to the date of institution of the proceedings;

 

(b) If the proceedings do not relate to any such debt, then, from the date mentioned in this regard in a written notice given by the person entitled or the person making the claim to the person liable that interest will be claimed, to the date of institution of the proceedings:

 

Provided that where the amount of the debt or damages has bean repaid before the institution of the proceedings interest shall not be allowed under this section for the period after such repayment.

 

(2) Where, in any such proceedings as are mentioned in subsection (1), -

 

(a) Judgment, order or award is given for a sum which, apart from interest on damages, exceeds four thousand rupees, and

 

(b) The sum represents or includes damages in respect of personal injuries to the plaintiff or any other person, or in respect of a person's death, then, the power conferred by that subsection shall be exercised so as to include ill that sum interest on those damages or on such part of them as the court considers appropriate for the whole or part of the period from the date mentioned in the notice to the date of institution of the proceedings, unless the court is satisfied that there are special reasons why no interest should be given in respect of those damages.

 

(3) Nothing in this section, -

 

(a) Shall apply in relation to-

 

(i) Any debt or damages upon which interest is payable as of right by virtue of any agreement; or

 

(ii) Any debt or damages upon which payment of interest is barred, by virtue of all express agreement;

 

(b) Shall affect-

 

(i) The compensation recoverable for the dishonour of a bill of exchange, promissory note or cheque, as defined in the Negotiable Instruments Act, 1881 (26 of 1881); or

 

(ii) The provisions of rule 2 of Order 11 of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908);

 

(c) Shall empower the court to award interest upon interest.