Interest Act, 1978
Section 2: Definitions
In this Act, unless the context otherwise requires,—
(a) "court" includes a tribunal and an arbitrator;
(b) "current rate of interest" means the highest of the maximum rates at which interest may be paid on different classes of deposits (other than those maintained in savings account or those maintained by charitable or religious institutions) by different classes of scheduled banks in accordance with the directions given or issued to banking companies generally by the Reserve Bank of India under the Banking Regulation Act, 1949 (10 of 1949).
Explanation.—In this clause, "scheduled bank" means a bank, not being a co-operative bank, transacting any business authorised by the Banking Regulation Act, 1949 (10 of 1949);
(c) "debt" means by liability for an ascertained sum of money and includes a debt payable in kind, but does not include a judgment debt;
(d) "personal injuries" includes any disease and any impairment of a person's physical or mental condition;
(e) all other words and expressions used herein but not defined and defined in the Reserve Bank of India Act, 1934 (2 of 1934), shall have the meanings respectively assigned to them in that Act.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 2
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Gayatri Balasamy v. M/s ISG Novasoft Technologies Limited
In ‡M. Hakeem and Anr.’s case, this Court held that while exercising powers u/s.34 of the Arbitration and Conciliation Act, 1996, a Court hearing the petition had no power to “modify” the Award, whereas other benches of…
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Pam Developments Private Limited v. The State of West Bengal & Anr.
Matter pertains to the arbitral award in favour of the contractor as regards labour charges for uneconomical stoppage of work, interest on delayed payment, and interest, upheld by the District Judge but set…
- Reliance Infrastructure Ltd. v. State of Goa
- Vedanta Ltd. v. Shenzen Shandong Nuclear Power Construction Co. Ltd.
- Secretary, Irrigation Department, Government of Orissa and Ors. Etc. Etc. v. G. C. Roy Etc. Etc.