Section 80
Interest when no rate specified.
The Negotiable Instruments Act, 1881
About this Act
An Act to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.
When no rate of interest is specified in the instrument,
interest on the amount due thereon shall, 1[notwithstanding any agreement relating to interest between any
parties to the instrument], be calculated at the rate of 2[eighteen per centum] per annum, from the date at
which the same ought to have been paid by the party charged, until tender or realization of the amount
due thereon, or until such date after the institution of a suit to recover such a mount as the Court directs.
Explanation.-- When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only from the time that he receives notice of the dishonour.
Explanation.-- When the party charged is the indorser of an instrument dishonoured by non-payment, he is liable to pay interest only from the time that he receives notice of the dishonour.
Notes
1. Subs. by Act 30 of 1926, s. 2, for "except in cases provided for by the Code of Civil Procedure, s. 532".
2. Subs. by Act 66 of 1988, s. 2, for "six per centum" (w.e.f. 30-12-1988).
2. Subs. by Act 66 of 1988, s. 2, for "six per centum" (w.e.f. 30-12-1988).