Court the Seller could charge interest on all overdue payments from their Customer?

A very common question we get is whether the Seller could charge interest on all overdue payments from their Customer?

In the case of BHS BOOK PRINTING SDN BHD v. PENERBITAN IMT SDN BHD, the Seller sold books to their Customer.

In the invoice to the Customer it was states “interest at the rate of 1% per month would be charged for all overdue payments”.

The Customer failed to pay the Seller, and the Seller sued the customer in Court to recover all overdue payments plus interest.

It was decided by Court, if a contract of sale of goods has provided for interest, the Seller of goods can clearly claim for interest on the price of the goods from their Customer.

In this case the Court allowed the Seller to claim for all overdue payments plus interest.