Kerala Financial Code

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Can penal interest be levied on overdue instalments of interest or principle and interest, when there is no stipulation to that effect in the order sanctioning the loan

Penal interest at 2.5% above the normal rate would be chargeable whether there is stipulation to that effect in the order sanctioning loan or not

Penal interest is not to be levied if non recovery of the instalment was beyond the control of the Govt. servant

If there is no stipulation in the sanction, penal interest can be levied only with Govt sanction

Cannot be levied in the absence of specific stipulation in the sanction

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