1. Dispute concerning payment of dues, application of enhanced interest rates, and issuance of occupation certificates in a property matter. (Para 2 , 3 , 4 , 5 )
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2000 Supreme(SC) 81
Supreme Court Of India
PATIALA INDS. INVESTMENT CO. (P) LTD.
Versus
UNION OF INDIA
Decided on : January 12, 2000
Important Points
The Court upheld the High Court's judgment, specifying that enhanced interest at 24% is chargeable from July 22, 1993. It mandated a structured payment schedule for dues, stipulating that compliance would preclude the respondent from exercising re-entry or forfeiture rights against the petitioners.
Subject
Civil Law - Contract Dispute
Act Referred
CHANDIGARH LEASE HOLD OF SITES AND BUILDINGS RULES: R.12(3)
Headnote
Enhancement of interest - Interest on delayed payment of installment - Order of the High Court regarding payment of enhanced interest modified to the extent that enhanced rate of interest @ 24% will be chargeable only w.e.f. 22.7.1993- Clarified that interest will continue to run at the enhanced rate on the decreasing balance till the date of payment.[Paras 2 and 3]
Legal Category Hierarchy
Table of Contents
2. Dispute over the effective date for charging an enhanced rate of interest on outstanding amounts. (Para 2 )
3. The High Court's judgment is upheld except for the specific date from which the enhanced interest rate becomes chargeable. (Para 2 )
4. Enhanced interest rates on outstanding dues are applicable only from the date determined by the court or conceded by parties. (Para 2 )
5. High Court judgment modified regarding interest start date; payment schedule mandated; re-entry rights waived upon payment; occupation certificate applications directed. (Para 2 , 3 , 4 , 5 , 6 )
6. When does the enhanced interest rate become applicable in this matter?
The enhanced interest rate of 24% is chargeable only from 22-7-1993. (Para 2 )
7. How is interest calculated on the outstanding balance during the payment period?
Interest continues to run at the enhanced rate on the decreasing balance until the date of payment. (Para 3 )
8. Does payment according to the court's schedule prevent the forfeiture of the property?
Yes, if payments are made as directed, the respondent will not exercise the right of re-entry or forfeiture based on payment delays. (Para 4 )
( 1 ) ). Substitution applications are allowed.
( 2 ) AFTER hearing the counsel for the parties, we are of the opinion that the judgment of the High Court calls for no interference except to the extent that, as fairly conceded by the Solicitor-General, that the enhanced rate of interest @ 24% will be chargeable only w. e. f. 22-7-1993.
( 3 ) ). Revised calculation of the amounts due and payable by the petitioners will be on this basis, will be served on the petitioners within one week from today. Within four weeks from the service of the revised demands 25 per cent of the amount due from each of the petitioners will be paid to the respondents. The balance amount will be paid within four months of the service of notice of demand. It is clarified that the interest will continue to run at the enhanced rate on the decreasing balance till the date of payment.
( 4 ) ). If the payment is made as directed by this order, the Solicitor-General states that the respondent will not exercise their right of re-entry/forfeiture under clause 17 or any other appropriate clause on the ground of delay in payment of the amounts due to the respondents.
( 5 ) ). The petitioners shall, within two weeks from today file applications for the grant of the occupation certificate which will be dealt with in accordance with law.
( 6 ) ). With the above observations these petitions are disposed of. Court Masters
