‘A’ borrows Rs. 5,000/- from ‘B’. Later he begs ‘B’ to accept back Rs. 5,000/- and discharge him from the debt as he was unable to pay the interest. ‘B’ agrees. However ‘B’ subsequently changes his mind and sues ‘A’ for the interest – Decide.
‘A’ cannot sue ‘B’ for the interest.
As per Sec. 63 of the Indian Contract Act, if the promisee dispenses with or remits (acceptance of a lesser consideration than the promised amount), wholly or in part, the performance of the promise made to him, then he cannot subsequently sue for the total or lesser consideration.
In the above case, as per Sec. 63 of the Indian Contract Act, ‘B’ having agreed to accept Rs. 5,000/- without interest, cannot subsequently demand interest for the principal amount.