https://www.taxtmi.com/caselaws?id=284112 In execution of a money decree, where the decree is silent and the parties have not agreed otherwise, part-payments by a judgment-debtor are appropriated first towards interest and costs and only then towards principal. The Supreme Court of India treated an award under the Motor Vehicles Act, 1988 as a money decree and applied the same rule of appropriation in execution. The argument that this created interest on interest was rejected, because the adjustment follows the settled mode of appropriation rather than compound interest. Interest after appropriation runs only on the unpaid principal balance. en-us Tue, 01 Apr 2014 00:00:00 +0530 Fri, 01 Nov 2019 11:13:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=284112 In execution of a money decree, where the decree is silent and the parties have not agreed otherwise, part-payments by a judgment-debtor are appropriated first towards interest and costs and only then towards principal. The Supreme Court of India treated an award under the Motor Vehicles Act, 1988 as a money decree and applied the same rule of appropriation in execution. The argument that this created interest on interest was rejected, because the adjustment follows the settled mode of appropriation rather than compound interest. Interest after appropriation runs only on the unpaid principal balance. Case-Laws Indian Laws Tue, 01 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=284112