Suit, the interest at the contractual rate will continue till the Suit is filed and the debtor would be constrained to pay interest at the contractual rate till the Suit is filed and such deliberate and unscrupulous delay in filing the Suit would be at the advantage of the Bank. The Hon’ble Apex Court observed that firstly, the Bank can afford to wait or delay the filing of the suit only during the period of limitation which delay would not be illegitimate. Secondly, nothing prevents the debtor, even during the period of this delay, to pay or tender the amount of interest as and when it falls due and thereby prevent its capitalization. Lastly, the Court is not powerless to deny the bank's claim for interest if in the facts and circumstances of a given case the Court is persuaded to hold that filing of the suit was delayed for the purpose of deliberately gaining an unfair advantage over the adverse financial condition of the defendant. In such cases the pre-suit interest, though claimed in accordance with the contract, would be denied by the Court on the ground of public policy and on the ground that the creditor has tried to gain an unfair advantage over the debtor by deliberate inaction, and that no one can take advantage of its/his own wrong. Ultimately, the Hon’ble Apex Court placed on record a few instances and one of the observations while answering reference is thus :
