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Jurisprudence and Legal Review of the Adjustment of the Obligation Amount with the Inflation Rate, in Monetary Obligations with Emphasis on the Unanimous Decision No. 805 of the Supreme Court of Iran

Document Type : Scientific Research

Authors

1 Assistant Professor of Jurisprudence and Islamic Law, Payame Noor University, Tehran, Iran.

2 Master of Private Law, Payame Noor University, Tehran, Iran.

Abstract

Contractual agreements are one of the most important tools in regulating the legal relations of societies. Faithfulness to one's vow is considered a requirement of religion and the most basic pillar of Islamic theory, which is considered objectionable in legal systems. Therefore, the obligation determined as a result of non-fulfillment of the obligation in the contract is valid for compensation based on articles 230 of the Civil Code and 515 of the Civil Procedure Code. Due to the lack of transparency and also according to Article 522 of the Civil Procedure Law, which considers the damages for late payment exclusively in monetary obligations according to the index rate of the Central Bank, the issue of the obligation of nearly forty years has become one of the unsolvable dilemmas in jurisprudence and legal opinions to stay. The matter was complicated when the specified obligation was stipulated in the monetary debt with an exorbitant amount. There were many doubts about the usury of this issue and it became a concern of the legal community until the jurists, considering the principle of justice and fairness and protecting weak debtors against strong creditors, decided on it like the banks. The Supreme Court of Iran, dated 10/16/2019, should be approved as a turning point for all disputes and doubts in order to clarify the matter. The achievement of this research was to examine the high step taken by the Supreme Court in solving this challenge.

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References
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Civil Law Knowledge
Volume 12, Issue 24 - Serial Number 24
January 2024
Pages 13-22
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