Haryana Engineering & Foundry ... vs Union Of India (Uoi)
1998 Latest Caselaw 647 Del

JUDGMENT

Y.K. Sabharwal, J.

1. This appeal is directed against the order of learned Single Judge holding that the decree holder is entitled to the principle sum of Rs. 5,37,622/- and interest thereon w.e.f. 1st November, 1991 @ 15% per annum till the date of deposit in Court in addition to Rs.26,489/- only on unpaid interest. The only grievance of the appellant in this appeal is against the direction that the appellant is entitled to interest @15% per annum till the date of deposit in Court which in other words means that the appellant would not be entitled to interest till the date of payment.

2. From the facts on record it appears that in terms of the order of Division Bench dated 19th March, 1996 passed in FAO(OS) No. 84/96 the respondent deposited in this Court a sum of over Rs. 13.00 lacs. The said order inter alia directing that the amount so deposited shall not be disbursed to the decree holder unless permitted by the Court. Thereafter the matter was referred to Mr. Justice P.K. Bahri, a former Judge of this Court. Justice Bahri in his report dated 27th May, 1997 has held that the decree holder is entitled to Rs. 5,37,622/- plus Rs. 26,489/- upto 31st October, 1991 and in entitled to have 15% simple interest on Rs.5,37,622/- till the date of payment. The report of Justice Bahri has since been accepted. The only point is whether the appellant is entitled to interest in terms of the report of Justice Bahri till the date of payment, i.e., 21st October, 1997 or till the date of deposit by the respondent of the sum of over Rs. 13.00 lakhs in this Court. That deposit was made on 10th April, 1996.

3. That report of Justice Bahri clear to the effect that interest is payable till date of payment. Even otherwise, in view of the order made by Division Bench dated 19th March, 1996 the appellant could not withdraw the amount even though deposited by the respondent. We may also note that the appellant is not claiming interest on the

decretal amount from the year 1989 but is claiming interest w.e.f. 1st November, 1991. We see no reason why the appellant shall be denied the payment of that interest. The payment cannot be denied simply on the ground that the respondent had deposited the amount as aforesaid in this Court on 10th April, 1996. The report of Justice Bahri is later in point of time. No one has filed any objections to the said report. The Registry has reported that out of amount deposited a sum of Rs. 1,15,126/- is lying as balance in Ex. Case No. 148/91. We have been informed that out of the amount deposited a sum of Rs. 9,27,000/- has been paid to the appellant and a sum of Rs.2,69,000/- to the respondent. According to the calculation of the appellant the amount of interest payable would be more than Rs. 1,20,000/-. In view of the conclusion that the appellant is entitled to interest upto the date of payment, i.e. 21st October, 1997 and according to calculations of appellant sum of Rs. 1,15,1267- is less than the amount due to the decree holder, we direct that this amount lying in the Registry be paid forthwith to the appellant. The appellant gives up its right to claim the balance amount. The appeal is allowed in the above terms. Parties are left to bear their own costs.