⚖️ Legal Learning | Shri Ganpati Jurists
The Kerala Water Authority & Ors. v. T.I. Raju & Ors.
🔹 No Interest if Contract Prohibits It
The Supreme Court held that when a contract expressly states that no interest shall be payable on delayed payments, courts cannot grant interest.
📘 The Interest Act, 1978 applies only where the contract is silent or creates a vacuum.
⚠️ Section 3(3) clearly bars awarding interest if the agreement prohibits it — something the High Court overlooked.
💡 Takeaway:
Contractual terms prevail.
Where there is an express bar, there is no scope for interest.
— Shri Ganpati Jurists ⚖️
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