https://www.taxtmi.com/caselaws?id=274100 A contractual clause excluding interest on sums payable to a contractor was held void and unenforceable as opposed to public policy. Applying Section 23 of the Indian Contract Act, 1872 with the Interest Act, 1978, the court reasoned that prolonged wrongful retention of money in commercial transactions cannot be insulated from compensatory interest by agreement. It held that public policy is dynamic, that immorality is not confined to sexual immorality, and that withholding payment without interest conflicts with commercial justice and the legislative policy reflected in the Interest Act. The contractor was therefore entitled to interest on the awarded sums. en-us Mon, 02 Nov 2015 00:00:00 +0530 Sun, 29 Jul 2018 11:40:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=274100 A contractual clause excluding interest on sums payable to a contractor was held void and unenforceable as opposed to public policy. Applying Section 23 of the Indian Contract Act, 1872 with the Interest Act, 1978, the court reasoned that prolonged wrongful retention of money in commercial transactions cannot be insulated from compensatory interest by agreement. It held that public policy is dynamic, that immorality is not confined to sexual immorality, and that withholding payment without interest conflicts with commercial justice and the legislative policy reflected in the Interest Act. The contractor was therefore entitled to interest on the awarded sums. Case-Laws Indian Laws Mon, 02 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=274100