<h1>Interest Rate Determination in Legal Claims: Courts Can Set Rates and Payment Periods Based on Case Specifics</h1> The Supreme Court ruled that courts have authority to determine interest rates and decide if interest is payable from suit filing date, prior period, or decree date based on case specifics. This judgment resolved a 52-year dispute between I K Merchants and Rajasthan government over share valuation. The Court modified the interest rate on delayed payments, awarding 6% simple interest from 1975 until decree date and 9% thereafter until payment realization. The Court emphasized that interest rates must balance fair compensation without becoming punitive, guided by equitable considerations rather than mechanical application. The government was directed to pay the enhanced amount within two months.