Article 522 of the Iranian Civil Procedure code with regard to money adjustment theory

This essay is an analytical approach to article 522 of The Iranian Civil Procedure Code ,with a historical study of the old regulations. In the first place,the “delayed payment penalty” in the The Civil Code and the abrogated Civil Procedure Code as well as the approach of Islamic jurisprudence (Fatwa)are discussed .It has also been emphasized that article 522 of the present Civil Procedure Code is different from “delayed payment penalty” in the abrogated rules which also exist in international trade law or French and German legal systems.Therefore , this is a new discourse in the Iranian law and cannot be compared with the old notion, I.e the” delayed payment penalty”. The new notion can be applied against the“nominal value of money “rule, mentioned for example, in article 1875 of the French Civil Code. This new discourse can be referred to as “money adjustment” which means if the debtor refuses to pay,after a demand by the creditor,he or she must pay damages equivalent to the inflation rate from the time the demand is made till the time the real payment is made,based on what is called the “Central Bank Index” announced each year by The Central Bank of Iran.