Madras High Court
Tamil Nadu Water Supply & Drainage ... vs S.Sengodan on 8 September, 2023
WA No.395 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 08.09.2023
CORAM
THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE P.D.AUDIKESAVALU
WA No.395 of 2023
1.Tamil Nadu Water Supply & Drainage Board,
No.31, kamarajar Salai, Chepauk,
rep. By its Managing Director,
Chennai 600005
2.The Chief Engineer,
Tamil Nadu Water Supply & Drainage Board,
Coimbatore
3.The Executive Engineer,
Tamil Nadu Water Supply & Drainage Board,
RWS Division, No.175-A,
Shola House, Udagamandalam : Appellants
versus
S.Sengodan : Respondent
Prayer: Writ appeal filed under Clause 15 of the Letters Patent against
the order dated 06.04.2022 in WP No.7308 of 2019.
For the Appellants : Mr.A.Abdul Hameed,
for Ms.S.Mekhala
For the Respondent : Mr.M.Rajasekar
Page 1 of 7
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WA No.395 of 2023
JUDGMENT
(Made by the Hon'ble Chief Justice)
The appellants assail the order of the learned singe Judge dated
06.04.2022 in WP No.7308 of 2019.
2. The present respondent had filed the writ petition seeking
payment of interest for the delayed payment. The original writ
petitioner was issued with work order by the appellant/Tamil Nadu
Water Supply and Drainage Board (hereinafter referred to as 'the
Board'). The work was completed on 31.03.2011. The responsibility of
the respondent/original writ petitioner for maintenance came to an end
on 31.03.2012. The present respondent/original writ petitioner
submitted bills to the Board. The Executive Engineer of the Board was
required to scrutinize and settle the bills within 15 days. According to
the respondent/original writ petitioner, the bills were settled over a
span of six years, from 2012 to 2018. For the delay in the settlement
and the payment, the respondent/original writ petitioner claimed
interest.
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WA No.395 of 2023
3. The learned Single Judge set aside the order of the appellant/
Board denying interest to the respondent/writ petitioner and directed
interest at the rate of 6% p.a. from the date of bill till the date of
computation. The said order is assailed in the present writ appeal.
4. It is not in dispute that the final bill was sanctioned on
25.09.2012. It is also admitted by the present appellants that part-
payment pursuant to the said bill, was made on 06.12.2013 and
28.08.2014. According to the learned counsel for the appellants, in the
year 2018, refund was made of the amount; whereas according to the
original writ petitioner, penalty was imposed upon the appellants , that
was set aside and an amount of Rs.1,40,000/- (Rupees One Lakh and
Forty Thousand only) was paid in the year 2018. However, it is not
disputed that an amount Rs.1,40,000/- (Rupees One Lakh and Forty
Thousand only) was paid in the year 2018.
5. The learned counsel for the appellant/Board submits that the
learned Single Judge failed to consider that the claim was barred by
limitation. The Court had also failed to consider that the writ petition
seeking Mandamus for payment of interest is not maintainable. The
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WA No.395 of 2023
payment of interest would be subject to the provisions of the Interest
Act.
6. To buttress his submission that for payment of interest the
writ petition would not be maintainable, the learned counsel for the
appellants relies upon the judgment of the Division Bench of the
Bombay High Court in the case of Shri Balaji Automobiles vs. Union of
India, (2002(2) Mh.L.J. 261).
7. According to the learned counsel for the respondent/writ
petitioner, the last payment was made in the year 2018 and as such,
the question of limitation does not arise. He submits that the writ
petition was maintainable, as the appellant/Board has negated the
claim of the respondent/writ petitioner for interest and the same was
challenged before the learned Single Judge.
8. The question of limitation may not be an issue inasmuch as
part payments were made by the appellants up to 28.8.2014, and
again amount was paid in the year 2018 with regard to the same
contract.
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WA No.395 of 2023
9. In view of the same, the question of limitation would not be
an issue.
10. The next issue would be about the payment of interest.
Interest would be liable to be paid even referring to the statute i.e. the
Interest Act, 1978.
11. Section 3(1)(a) of the Interest Act provides that interest
could be allowed to the person entitled to the debt or damages or to
the person making such claim, at a rate not exceeding the current rate
of interest, for the whole or part of the following period, that is to say,-
(a) if the proceedings relate to a debt payable by virtue of a written
instrument at a certain time, then, from the date when the debt is
payable to the date of institution of the proceedings.
12. In the present case, payment to the respondent/writ
petitioner was certainly a debt. The learned single Judge has awarded
only 6% rate of interest. The same would be less than the highest of
the maximum rate at which interest may be paid on different classes
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WA No.395 of 2023
of deposits other than those maintained in service account by different
classes of scheduled bank in accordance with the directions given or
issued to the banking companies generally by the Reserve Bank of
India, under the provisions of the Banking Regulation Act.
13. Further, the appellant/Board is an instrumentality of the
State. The instrumentality of the State has to be a model litigant. The
respondent/ writ petitioner was claiming interest pursuant to a right
which can be referable to a statute i.e. the Interest Act, 1978.
14. In view of the aforesaid, there is no case for interference
with the order of the learned Single Judge. The writ appeal is
dismissed. There will be no order as to costs. Consequently, CMP
No.3762 of 2023 is closed.
(S.V.G., CJ.) (P.D.A., J.)
08.09.2023
Index : Yes/No
Neutral Citation : Yes/No
tar
https://www.mhc.tn.gov.in/judis
WA No.395 of 2023
THE HON'BLE CHIEF JUSTICE
AND
P.D.AUDIKESAVALU, J.
(tar)
WA No.395 of 2023
08.09.2023
https://www.mhc.tn.gov.in/judis
