Jet Airways (India) Ltd v. Sahara Airlines Ltd & Ors.(2011) Vol 113 (3) Bom. L.R. 1725

Indian Contract Act , 1872
S. 59 : Application of payment where debt to be discharged is indicated – Apportionment between interest and principal- Firstly in payment of interest and cost therfater payment of principal amount , unless a specific direction contained in the decree or contract . [ S 60 , 61 ]

The general rule of appropriation of payments towards an decretal amount is that such an amount is to be adjusted firstly, strictly in accordance with the directions contained in the decree and in the absence of such direction, adjustments be made firstly in payment of interest and costs and thereafter is payment of the principal amount.  Followed Industrail Credit & Development Syndicate v Smithaben H.Patel (1999) 3SCC 80 .

 

 The maxim – specilia generalibus derogent , in the event of a conflict between a special law and a general law , the special law must always prevail .