Pakistan Code
The Interest Act, 1839
Act No. XXXII of 1839
[30th December, 1839]
An Act relating to the allowance of interest in certain cases.
Whereas it is expedient to extend to the territories under the Government of the East India Company—whether within the jurisdiction of Her Majesty’s Courts or otherwise—the provisions of the Statute 3rd and 4th William IV, Chapter 42, Section 28, concerning the allowance of interest in certain cases, it is hereby enacted as follows:
Power of Court to Allow Interest—Upon all debts or sums certain payable at a specified time or otherwise, the Court before which such debts or sums are recovered may, if it thinks fit, allow interest to the creditor at a rate not exceeding the current rate of interest. Such interest may be allowed from the time when the debt or sum became payable, if it is payable under a written instrument at a fixed time; or, if payable otherwise, from the time when a written demand for payment was made, provided that such demand gives notice to the debtor that interest will be claimed from the date of the demand until payment.
Provided that interest shall be payable in all cases in which it is now payable by law.