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Director General (Town Planning) And ... vs M/S Rama Chairs
2025 Latest Caselaw 1753 Cal/2

Citation : 2025 Latest Caselaw 1753 Cal/2
Judgement Date : 13 June, 2025

Calcutta High Court

Director General (Town Planning) And ... vs M/S Rama Chairs on 13 June, 2025

Author: Soumen Sen
Bench: Soumen Sen
OD-5
                      IN THE HIGH COURT AT CALCUTTA
                          Civil Appellate Jurisdiction
                                ORIGINAL SIDE
                                  RVWO/2/2025
                                       WITH
                                  APOT/94/2024
                                IA NO: GA/1/2025

               DIRECTOR GENERAL (TOWN PLANNING) AND ORS
                                  VS
                           M/S RAMA CHAIRS

  BEFORE:
  The Hon'ble JUSTICE SOUMEN SEN
             AND
  The Hon'ble JUSTICE BISWAROOP CHOWDHURY
  Date : 13th June, 2025
                                                                                Appearance:
                                                                    Mr. Jaydip Kar, Sr. Adv.
                                                                     Mr. Altamas Alim, Adv.
                                                                             ... for the KMC.

                                                             Mr. Chanchal Kumar Dutta, Adv.
                                                                     Mr. Rupak Ghosh, Adv.
                                                                   Ms. Krishna Mullick, Adv.
                                                                       ... for the respondent.

1. This review application has been filed in terms of the leave granted by

the Hon'ble Supreme Court in disposing of the Special Leave Petition

being Special Leave Petition(Civil) Diary No(s). 50349/2024 on 9 th

December, 2024 arising out of a judgment and order dated 16 th April,

2024. The Hon'ble Supreme Court while disposing of the Special

Leave Petition has passed the following direction:-

"However, we grant permission to the petitioner(s) to file a review only with respect to the contention that even after the deposit made contrary to Order 21 Rule 1 of the Code of Civil Procedure interest has been added.

We request the High Court to give a finding on said contention, notwithstanding the observation made that the petitioner(s) is not entitled to raise a contention on merits, as no objection was raised."

2. In view of the aforesaid observations, this application has been filed

and is limited to the extent to ascertain whether the contention of the

applicant that even after the deposit is made interest has been added

contrary to Order 21 Rule 1 of the Code of Civil Procedure. The

Hon'ble Supreme Court observed that the High Court shall give a

finding on the said contention.

3. We have heard Mr. Jaydip Kar, learned Senior Counsel appearing on

behalf of the applicants and Mr. Rupak Ghosh, learned Counsel

appearing for the respondent.

4. The decree holder filed two execution applications being EC/55/2017

and EC/5/2017 for execution of a decree dated 17 th September, 2015.

The decree was for realization of money claim of Rs.50,83,155/- along

with cost of Rs.1,00,000/-.

5. The learned Single Judge in deciding the said application passed an

order on 16th May, 2023 by which a sum of Rs.52,00,000/-

maintained with the Union Bank of India, Dharmtolla branch of the

judgment debtor was attached to the extent of Rs.52,00,000/-. The

appeal preferred against the decree was dismissed. The Coordinate

Bench in which one of us (Biswaroop Chowdhury, J.) was a party

affirmed the decree and accepted the determination of liability at a

reference held by the learned Registrar, Original Side in terms of the

order of the Hon'ble Division Bench. This order was under challenge

in which the Hon'ble Supreme Court passed the aforesaid directions.

6. Mr. Kar has submitted that by reason of attachment of

Rs.52,00,000/-, the applicant could not be saddled with liability of

interest on the said amount as the applicant/appellant was unable to

utilize the said amount. The direction of the Coordinate Bench in

directing payment of interest on the decretal amount, notwithstanding

attachment of the said account is contrary to Order 21 Rule 1 of the

Code of Civil Procedure.

7. It is further submitted that even if it is contended and held that the

aforesaid finding of the Coordinate Bench with regard to payment of

interest on the principal amount is correct, no interest could have

been awarded on the cost of Rs.1,00,000/-.

8. Mr. Rupak Ghosh, learned Counsel appearing on behalf of the decree

holder has submitted that the said amount had remain attached,

however, it is considered that the interest would not have been

calculated at the rate of 18% on costs. Order 21 Rule 1 provides

modes of paying money under decree. The word to be emphasized is

payment of money under a decree. The order of attachment does not

give the benefit of the decree holder of the amount to which is entitled

to under the decree and hence he is unable to utilize the said amount

for his own purpose. The order of attachment is not akin to complete

loss of control over the money and debit of the account. It still shows

the said amount in the statement of account. In fact, the judgment

relied upon by Mr. Kar, namely, K. L. Suneja and Anr. Vs. Dr.

Manjeet Kaur Monga reported in (2023) 6 SCC 722, in paragraph 36

has clarified the said issue. For the sake of convenience, paragraph

36 is reproduced below:

"36. The provisions of Order 21 are applicable to decrees of civil court. However, they embody a sound policy principle, that if the amount is deposited, or paid to the decree-holder or person entitled to it, the person entitled to the amount cannot later seek interest on it. This is a rule of prudence, inasmuch as the debtor, or person required to pay or refund the amount, is under an obligation to ensure that the amount payable is placed at the disposal of the person entitled to receive it. Once that is complete (in the form of payment, through different modes, including tendering a banker's cheque, or pay order or demand draft, all of which require the account-holder/debtor to pay the bank, which would then issue the instrument) the tender, or "payment" is complete."

9. In view thereof, we are unable to accept the contention of Mr. Kar that

by reason of attachment order the plaintiff would not be entitled to

any interest on the principal sum as directed by the learned Single

Judge and affirmed by the Hon'ble Division Bench. However, there

appears to be a mistake or error in the order apparent on the face of

the record as the order has accepted the calculation made by the

learned Registrar, Original Side in which it appears that interest at

the rate of 18% was charged on the costs awarded, namely,

Rs.1,00,000/-.

10. In view thereof, we allow the review application to the extent that

awarding of interest on costs assessed at Rs.1,00,000/- is set aside

and the learned Registrar, Original Side is directed to re-calculate the

said amount on the basis of the principal sum by making suitable

revision to the calculation made on 3rd July, 2024 and accepted by

the Coordinate Bench.

11. On the prayer of the learned Counsel for the parties, the matter shall

be listed on 27th June, 2025 under the heading 'For Orders'.

12. The learned Registrar, Original Side is directed to recalculate the

amount in terms of this order with the assistance of the Advocate-on-

record for the parties and file a revised report on the adjourned date.

13. The cut off date for the calculation should be as of 3 rd July, 2024 and

all payments made in the meantime shall be adjusted towards the

decretal amount.

(SOUMEN SEN, J.)

(BISWAROOP CHOWDHURY, J.) s.pal/mg

 
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