concept of interest - Indian Laws - General

Concept of interest- As per Krishna Kumar Birla vs Rajendra Singh Lodha and ors.- 2008 (3) TMI 741 - SUPREME COURT Legal Thesaurus Regular Edition by Wlliam C. Burton defines interest as under: Interest (Ownership), noun Assets, belongings, claim, dominion, droit, holding lawful possession, part, participation, percentage of ownership, portion, possession, property, proprietorship, right, right of ownership, rightful possession , seisin, share, stake, title Associated Concepts : accounts bearing interest, assignable interest, beneficial interest, common interest, contingent interest, continuity of interest, controlling interest, future interest, interest in hand, joint interest, legal interest, legal rate of interest, life interest, person interested in a will, property interest, qualified interest, remainder interest, remaining interest, transit of interest, undivided interest. In Halsbury s Laws of England, Fourth Edition, Volume 32 , interest has been defined as follows:- 127. Interest in general . Interest is the return or compensation for the use or retention by one person of a sum of money belonging to or owed to another. Interest accrues from day to day even if payable only at intervals, and is, therefore, apportionable in respect of time between persons entitled in succession to the principal. According to Law Lexicon, by P. Ramanathan Aiyar 3rd Edition (2005) (page 2402) Vol 2: Interest means the time value of the funds or money involved, which, unless otherwise agreed, is calculated at the rate and on the basis customarily accepted by the banking community for the funds of money involved. In WORDS AND PHRASES permanent editions, Vol 22-page 148, Interest means :- i) Interest is compensation for loss of use of principal. Jersey City v. Zink, 44 A.2d 825, 828, 133 N.J. Law 437 ii) Interest means compensation for the use or forbearance of money. Commissioner of Internal Revenue v. Meyer, CCA, 139 F.2d 256,259 Black s Law Dictionary, Sixth Edition (page 812) defines Interest as:- For use of money. Interest is the compensation allowed by law or fixed by the parties for the use or forbearance of borrowed money. Jones V. Kansas Gas Electric Co.222 Kan. 390, 565, P.2d 597, 604. [State of Karnataka and others v. Karnataka Pawn Brokers Association and others- 2018 (3) TMI 1064 - SUPREME COURT]