Sale of Goods Act Section 61 — Interest by way of damages and special damages
CHAPTER VI SUITS FOR BREACH OF THE CONTRACT
Commercial / Corporate
Summary
Sub-section (1) states that this Act does not take away any right that a seller or buyer already has under other laws to recover interest or special damages, where those are legally allowed. It also preserves the right to recover money that was paid when the consideration for that payment has failed, meaning the payment was made for something that did not materialise.
Sub-section (2) says that, unless the contract says otherwise, a court may award interest at a rate it considers appropriate on the amount of the price. Under clause (a), this interest can be given to the seller in a suit for the price, starting from the date the goods were tendered or from the date the price was due. Under clause (b), this interest can be given to the buyer in a suit for a refund of the price due to the seller's breach of contract, starting from the date the payment was made.
Official Text
(1) Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages in any case where by law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed.
(2) In the absence of a contract to the contrary, the Court may award interest at such rate as it thinks fit on the amount of the price—
(a) to the seller in a suit by him for the amount of the price— from the date of the tender of the goods or from the date on which the price was payable;
(b) to the buyer in a suit by him for the refund of the price in a case of a breach of the contract on the part of the seller—from the date on which the payment was made.