[Section 3(3) Of Interest Act, 1978] Interest payable only on principal amount, not on interest awarded by court: Allahabad High Court | ProAdvocate

[Section - 3(3) Of Interest Act, 1978] Interest payable only on principal amount, not on interest awarded by court: Allahabad High Court

The Allahabad High Court held that interest cannot be charged on the award of interest under Section 3(3) of the Interest Act, 1978, it is payable only on the principal amount. Bal Mukund, Advocate for respondent no. 3, applied for registration of MIG 45/75 type house under Dev Prayagam Scheme of Uttar Pradesh Housing and Development Council, Allahabad. Rs. 20,000 was deposited as registration amount.

Subsequently he won the lottery draw and was issued an allotment letter with the condition that Rs. 1,92,956/- should be deposited by 31.08.2005. The remaining amount of Rs. 2,63,300/- was to be deposited in 120 monthly installments with interest at the rate of 13%.

Case Title: Uttar Pradesh Housing and Development Council & Ors. Vs. State Consumer Disputes Redressal Commission & 2 Ors. [Writ - C No. - 27185/2022]