12:13 - 18.12.2025

---

December 18, Fineko/abc.az. Withholding of interests from loan interests is illegal.

ABC.AZ reports, referring to the decision of the Supreme Court, which formed a unified judicial practice on the accrual of interest for late payment of debt.

The legal dispute was related to the plaintiff's demand to collect additional interests from the defendant for the delay due to the late repayment of the monetary debt. Thus, the plaintiff combined the amounts of the principal debt and interests previously recovered from court decisions and demanded a re-accrual of interest for delay on this cumulative amount.

The court of first instance dismissed the claim, and the Court of Appeal agreed with this position, after which the case on the cassation appeals of both sides was considered by the Supreme Court.

The decision emphasizes that, according to Articles 445.7 and 449 of the Civil Code, interests for delay should be accrued only on the amount of the outstanding principal amount of the debt and only until the date of repayment of the debt. The addition of interests previously collected by the court to the principal debt and the repeated accrual of late interests for this total amount leads to the collection of "interests on interests", which is prohibited by law.