Interest payable under certain enactments
Section 4 of the Interest Act, 1978 deals with interest payable under certain enactments. Notwithstanding anything contained in section 3, interest shall be payable in all cases in which it is payable by virtue of any enactment or other rule of law or usage having the force of law. The Act came into force on 19 Aug 1981.
(1) Notwithstanding anything contained in section 3, interest shall be payable in all cases in which it is payable by virtue of any enactment or other rule of law or usage having the force of law.
(2) Notwithstanding as aforesaid, and without prejudice to the generality of the provisions of subsection (1), the court shall, in each of the following cases, allow interest from the date specified below to the date of institution of the proceedings at such rate as the court may consider reasonable, unless the court is satisfied that there are special reasons why interest should not be allowed, namely:--
(a) where money or other property has been deposited as security for the performance of an obligation imposed by law or contract, from the date of the deposit;
(b) where the obligation to pay money or restore any property arises by virtue of a fiduciary relationship, from the date of the cause of action;
(c) where money or other property is obtained or retained by fraud, from the date of the cause of action;
(d) where the claim is for dower or maintenance, from the date of the cause of action.
Section 4, The Interest Act, 1978 (Act 14 of 1978).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Bank of Maharashtra v. M/s Strip India
Court's Decision & Legal Precedent
Final Order order-1.pdf 2011-07-25 (Valmiki J. Mehta J.). Tool DATE-CHECK FP on demand-notice fact dates — body % July 25, 2011 Bank of Maharashtra. Interest Act s.4(1) usage permits interest on commercial bank credit even without express agreement; also relies on s.3(1)(b) after demand. Map Interest 4.
On this section: s.4(1) interest payable under usage — commercial bank credit attracts interest even without express agreement.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 4
What have the courts held on Section 4 of the Interest Act?
Bank of Maharashtra v. M/s Strip India (25 Jul 2011) is the leading judgment on this section among those set out below: s.4(1) interest payable under usage — commercial bank credit attracts interest even without express agreement.
How do I find court cases under Section 4 of the Interest Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Interest Act 1978 4, section 4 Interest Act 1978, section 4 of the Interest Act. People searching for it also type interest act s.4. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Bank of Maharashtra v. M/s Strip India (25 Jul 2011).
What should I read with Section 4 of the Interest Act, and has it changed?
Its own text turns on section 3 (Power of court to allow interest), so none of them can safely be read on its own.
When did Section 4 of the Interest Act come into force?
Section 4 of the Interest Act, cited as Interest Act 1978 4, came into force on 19 Aug 1981, having been enacted on 31 Mar 1978. It is in force as at the date shown on this page.
Other sections of this Act
- 3. Power of court to allow interest453 words
- 2. Definitions189 words
- 6. Repeal and saving127 words
- 1. Short title, extent and commencement46 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.