Clause 29

Where interest on a debt was not previously reserved or agreed, interest is allowed on the debt at a rate not exceeding the prescribed rate of interest in the following circumstances:

in any case where the debt is due by virtue of a written instrument and payable at a certain time, interest is allowed for the period between that time and the date of the bankruptcy order;

in any other case, if a demand for payment was made in writing by or on behalf of the creditor before the making of the bankruptcy application, and notice was given that interest would be payable from the date of the demand to the date of the payment, interest is allowed for the period between the date of the demand and the date of the bankruptcy order.(2) For the purposes of distribution of dividend —

where a debt which has been proved in a bankruptcy includes interest, and the rate of such interest was previously agreed or reserved, the interest is calculated —

from the date the interest was payable to the date of the bankruptcy order; and

at the rate previously agreed or reserved, or at the prescribed rate of interest, whichever is the lower,without prejudice to the right of a creditor to receive out of the surplus of the estate, after all the debts proved in the bankruptcy have been paid in full, any higher interest in the manner provided for in section 121A; and

where a debt which has been proved in a bankruptcy includes interest, and the rate of such interest was not previously agreed or reserved, the interest is calculated —

from the date the interest was payable to the date of the bankruptcy order; and

at the prescribed rate of interest.(3) Interest on preferential debts rank equally with interest on other debts.(4) In this section, “interest” includes any pecuniary consideration in lieu of interest and any penalty or late payment charge by whatever name called.”.