Union Of India vs Mah'Tra State Electricity Board
2022 Latest Caselaw 10401 Bom

                                                                                       906 fa 1009-96.doc


                               IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                       CIVIL APPELLATE JURISDICTION

                                             FIRST APPEAL NO. 1009 OF 1996


                        Union of India                                              ..Appellant.

                                      v/s.

                        Maharashtra State Electricity Board                         ..Respondents


                        Mr. T.J.Pandian a/w. T.C.Subramanium for the Appellant-UOI.
                        Mr.A.R.S. Baxi for the Respondent.

                                                    CORAM : ANUJA PRABHUDESSAI, J.

DATED : 10th OCTOBER, 2022.

P.C.

1. Shri Pandian, learned Counsel for the Appellant states that he is

restricting the challenge only to the rate of interest. He submits that the

Railway Claims Tribunal has awarded interest at the rate of 12% per

anum with effect from the date of application till the date of payment.

Relying upon the decision of this Court in Union of India v/s. State

Trading Corporation Ltd. 2007 (3) Mh.L.J. 609, he seeks reduction of

rate of interest at 6% per anum.

2. In State Trading Corporation (supra) this Court, after considering

the previous decision in Maharashtra State Electricity Board vs. Union

of India 2005(1) Mah.L.J. 165, this Court had reduced the rate of

interest from 9% to 6% per anum to be paid from the date of filing of Digitally signed by PRASANNA P the Claim Application. The said judgment pertains to the claim of the PRASANNA P SALGAONKAR SALGAONKAR Date:

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year 1990, whereas the claim in the present matter is of the year 1992.

In order to maintain uniformity, the rate of interest in the present case is

also reduced to 6%.

3. Hence the Appeal is partly allowed. Interest rate is reduced from

12% to 6% per anum, to be paid from the date of filing of the Claim

Application.

4. Respondent is permitted to withdraw the compensation along with

interest @ 6% per anum from the date of Claim Application.

5. The balance amount be refunded to the Appellant.

6. Appeal stands disposed of. Decree may be drawn accordingly.

                                                        (ANUJA PRABHUDESSAI, J.)




P P SALGAONKAR                                                                            2 of 2