Condonation of War-time Interest on Government Debts

Condonation applies to all unpaid interests from January 1, 1942, to December 31, 1945.
It applies to debts and obligations outstanding as of December 8, 1941.
The condonation targets interest claims by the Government or government-owned/controlled corporations.
Four scenarios justify condonation: a) Debtor’s inability to pay due to creditor’s refusal to accept payments or creditor’s non-operation during the period. b) Debtor’s involvement in resistance activities, or imprisonment/arrest by the enemy preventing payment. c) Conditions of poverty caused by war, financial restrictions by authorities, or loss of income sources. d) Debtor’s payment to enemy-controlled entities in good faith or due to fear of reprisals.

Interests paid on debts outstanding as of December 8, 1941, for the war period interest accruements must be applied to the principal obligation if still outstanding.
This applies only if payments were made on or after February 28, 1945, and before the Act’s effectivity.

Condonation: forgiveness or waiver of debts (specifically interests here).
Principal obligation: the original debt excluding accrued interest.
Government-owned or controlled corporations as creditors.
Specific temporal scope tied to war years (1942-1945) and the date debts were outstanding (December 8, 1941).
Recognition of war-induced circumstances justifying non-payment or adjustments in debt obligations.