History of Dharmashastra (Ancient and Mediaeval Religious and Civil Law in India) v4.c63.579

v4.c63.579

A loan has to be returned on demand if no time is fixed for repayment or on the expiry of the time (if one has been fixed by the parties) or when interest ceases on account of becoming equal to the principal (Bṛ. in S. B. E. vol. 33 p. 328 verse 47) Interest stops when on the debtor offering to pay the loan the creditor refuses to accept it and the debtor deposits the money in the hands of a third person (Gaut. XII. 30, Yāj. II. 44). With Yāj. II. 44 section 84 of the Transfer of Property Act (IV. of 1882) may be compared. Vas. II. 49 states the remarkable rule that interest stops the moment the king dies and begins to run only after the coronation of the successor.⁶⁹⁵ Nār. II. 39 (S. B. E. vol. 33 p. 33) provides that no interest runs on the price of commodities, on wages, on a deposit, on a fine, on what has been idly promised (to bards and the like) and on the stake won in gambling, unless there is a special or express agreement to pay interest.⁶⁹⁶ Kāt. (508) has a similar verse,⁶⁹⁷ but adds hides, crops, liquor, bride-price and suretyship debts to some of those mentioned by Nār. Kauṭ. (III. 11) provides that no interest runs where the debtor is a person engaged in a Vedic sacrifice of long duration, or is suffering from a disease or is staying at his teacher's house (*gurukula*) for study or is a minor or is a man without any substance. As regards some cases where originally a thing is lent to a person out of friendship or because he asked a loan of it, Nār. (IV. 108) and Kāt. (502–505) lay down certain rules which are quoted in the Mit. (on Yāj. II. 38) and other works. Nār. (IV. 108) prescribes⁶⁹⁸ that no interest ever attaches to things loaned through friendship, unless there is an express stipulation to that effect; but even in the absence of a stipulation interest starts running after the expiry of six months. Nār. IV. 109 and Kāt. (505) both lay down that a loan (of money or an article) made through friendship cannot begin to earn interest as long as no demand is made for its return. If the debtor refuses to return it after it is demanded interest begins to run at the rate of five per cent. Kāt. (502–504)⁶⁹⁹ lays down three propositions about *yācitaka* (a temporary loan of money or of an article): (1) When a person takes such a loan and goes to another country without returning it, that loan begins to acquire interest after a year from the date of the loan (though no demand be made); (2) if a person after taking a loan goes to another⁷⁰⁰ country without returning it even when pressed by the lender to return it that loan begins to acquire interest three months (after demand); (3) when the borrower of a thing does not return it even though he is pressed to return it, the king should make him pay interest from that day (i. e. day of demand), though it was not agreed upon, though he remained in the country and though he be unwilling to pay interest. The Madanaratna says that in these cases where no interest is settled beforehand and where the texts do not specify the rate (as Kāt. 505-506 do viz. what is lent through friendship, a deposit, balance of interest, unpaid purchase money, if not returned on demand, begin to carry interest at five per cent per month), the rate of interest would be the one stated by Yāj. II. 37 (viz. 1/80th per month) and Viṣṇu VI. 4. (*akṛtāmapi vatsarātikrameṇa yathāvihitām*).