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2017 Supreme(SC) 1579
SUPREME COURT OF INDIA
Kurian Joseph, Mohan M. Shantanagoudar, JJ.
South Eastern Coalfields Ltd. – Appellants
Versus
Birla Corporation Ltd. & Anr. – Respondents
Civil Appeal No. 10703 of 2017 @ Special Leave Petition (C) No. 579 of 2016
Decided On : 21-08-2017
For the Appellants :Anupam Lal Das, Anirudh Singh, Advocates
For the Respondents:Ranjan Bachawat, Sr. Adv., Sanjay Ginodia, Mayank Mishra, Sidharth Sethi, Advocates
The court's decision was guided by the principle of ensuring that the party successful in the litigation would not lose any interest out of the deposit.
Headnote:
Bank Guarantee - Disposal of Suit - The court ordered the amount taken by invoking bank guarantee to be deposited in the name of the Registrar, Original Side in an interest earning deposit pending disposal of the suit, ensuring that the party successful in the litigation would not lose any interest out of such deposit.
Fact of the Case:
The appellant approached the Court aggrieved by the order passed by the High Court of Calcutta in APOT No. 417 of 2015, which directed the deposit of the amount taken by invoking bank guarantee pending disposal of the suit.
Finding of the Court:
The Court found it in the interests of both parties that the interim order for the deposit continues till the suit is finally disposed of.
Issues: Disposal of the amount taken by invoking bank guarantee, stay of operation and implementation of the impugned Judgment.
Ratio Decidendi: The court's decision was influenced by the need to ensure that the party successful in the litigation would not lose any interest out of the deposit, and that it was in the interests of both parties to continue the interim order for the deposit till the suit is finally disposed of.
Final Decision: The appeal was disposed of, and the interim order for the deposit was ordered to continue till the suit is finally disposed of.
JUDGMENT :
Kurian Joseph, J.
Leave granted.
2. The appellant approached this Court, aggrieved by the order dated 08.09.2015 passed by the High Court of Calcutta in APOT No. 417 of 2015. The order to the relevant extent reads as follows :-
"In the above circumstances, it would not be justifiable to answer the controversy either in favour of the appellant/plaintiff or in favour of the respondents/defendants. Therefore, we are of the opinion the amount taken by invoking bank guarantee, that is, Rs. 91 Lacs and odd, be deposited in the name of the Registrar, Original Side in any nationalised bank in an interest earning deposit pending disposal of the suit so that whoever is ultimately successful in the civil litigation would not lose any interest out of such deposit. Ultimately the amount shall go to the party who is successful in the litigation.
With these observations, the appeal and the application are disposed of setting aside the impugned order.
The respondents/defendants are permitted to file written statement within four weeks and do all other formalities in accordance with the procedure. List the suit for hearing two weeks after vacation."
3. When the matter came up before this Court, the following order was passed on 08.01.2016 :-
"Delay condoned.
Issue notice.
In the meantime, there shall be stay of operation and implementation of the impugned Judgment."
4. Having heard the learned counsel appearing on both sides, we are of the view that it is in the interests of both the parties that the interim order passed by this Court continues till the suit is finally disposed of. Ordered accordingly.
5. In view of the above, the appeal is disposed of.
