Interest between jews on court order
Question
JEW A sues JEW B in court. B wins and is awarded partial cost recovery. A asks the court to allow several months to pay and is given the time requested, but the court order also provides a fixed interest rate per diem for late payment. The payment is made 6 weeks late so B demands interest. A says NO because halachically, a jew can not collect interest from another jew. I thought that only applies in a loan and the parties need to agree that at the outset. Is interest owed in this case?
Answer
Thank you for your question.
From what I understand it would be forbidden to pay the interest due to the prohibition of RIbis.
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