#contractual interest

After a SICA rehabilitation scheme collapses, creditors may claim pendente lite interest from the date of suit filing at the contractual rate, with all recoveries first applied to interest before principal. This clarifies the repayment hierarchy for banks and financial institutions pursuing legacy debt recovery under the now-repealed SICA framework, reinforcing contractual rights in insolvency aftermaths.

NCDRC reinforces that builders failing to deliver possession within contractual timelines must refund homebuyers with interest as stipulated in the agreement. The ruling underscores that deficiency in service under the Consumer Protection Act includes non-delivery of property, entitling buyers to full refunds with contractual interest, not just simple interest.

Punjab & Haryana HC rules that contractual interest rates in mortgage agreements prevail over statutory caps, even for agricultural loans. The court held that Order XXXIV Rule 11 CPC governs interest awards, prioritizing contractual terms over the borrower's purpose, impacting lenders and borrowers in mortgage disputes.