(1)Subject to county court rules, in proceedings (whenever instituted) before a county court for the recovery of a debt or damages there may be included in any sum for which judgment is given simple interest, at such rate as the court thinks fit or as county court rules may provide, on all or any part of the debt or damages in respect of which judgment is given, or payment is made before judgment, for all or any part of the period between the date when the cause of action arose and—
(a)in the case of any sum paid before judgment, the date of the payment; and
(b)in the case of the sum for which judgment is given, the date of the judgment.
(2)In relation to a judgment given for damages for personal injuries or death which exceed £200 subsection (1) above shall have effect—
(a)with the substitution of " shall be included " for may be included " ; and
(b)with the addition of " unless the court is satisfied that there are special reasons to the contrary " after " given ", where first occurring.
(3)Subject to county court rules, where—
(a)there are proceedings (whenever instituted) before a county court for the recovery of a debt; and
(b)the defendant pays the whole debt to the plaintiff (otherwise than in pursuance of a judgment in the proceedings),
the defendant shall be liable to pay the plaintiff simple interest at such rate as the court thinks fit or as county court rules may provide on all or any part of the debt for all or any part of the period between the date when the cause of action arose and the date of the payment.
(4)Interest in respect of a debt shall not be awarded under this section for a period during which, for whatever reason, interest on the debt already runs.
(5)Interest under this section may be calculated at different rates in respect of different periods.
(6)In this section " plaintiff " means the person seeking the debt or damages and " defendant" means the person from whom the plaintiff seeks the debt or damages and " personal injuries " includes any disease and any impairment of a person's physical or mental condition.
(7)Nothing in this section affects the damages recoverable for the dishonour of a bill of exchange.
(8)In determining whether an amount exceeds—
(a)the county court limit; or
(b)an amount specified in any provision of this Act,
no account shall be taken of the provisions of this section or of anything done under it.