The normal rule of appropriation of payments is that payments made by a judgment debtor towards decretal dues are first appropriated towards interest and then towards the principal.

AVINASH SOMAKANT BHATE, J.

( 1 ) THESE two revisions are being disposed of by a common judgment as they arise out of the same judgment of the trial Court.

( 2 ) SUIT O. S. No. 59 of 1958 was filed for accounts. A preliminary decree was passed on 14-11-1958. Against that an appeal was preferred which was dismissed on 16-11-1963. In Supreme Court also the appeal was dismissed on 14-9-1966. Thereafter, the plaintiff filed an application LA. No51 of 1976 for passing of a final decree which was ultimately passed on 17-11-1977. Against this final decree the defendants preferred an appeal C. C. C. A. No. 78 of 1978, which was dismissed on 10-3-1987. The E. P. was filed in 1992 but was dismissed qn 16-2-1994. Thereafter, E. P. 15 of 1994 was filed before the executing Court for executing the decree against the judgment debtors.

( 3 ) THE judgment debtors had contested the E. P. It was contended that the e. P. was not maintainable as it was barred by limitation. Another point raised was that the amount which was deposited or paid by the judgment debtors should first be appropriated towards principal amount and not towards interest.

( 4 ) THE learned trial Judge by the impugned order accepted the contention of the judgment-debtors that the amounts which were deposited by the judgment-debtors should first be appropriated towards principal amount and not towards interest as was done by the decree-holder while calculating the amount due from the judgment debtors. However, on question of limitation, the learned Judge below answered against the judgment-debtors and found that the execution petition was well within the limitation from the date on which the appellate Court s decree was passed.

( 5 ) THE questions that have been agitated before this Court are also the same. It appears that the learned Court below was swayed by the decision in Punjab National Bank Delhi and etc. vs. Premsagar Choudhary and others1 to hold in favour of the judgment-debtors that the payments made by them before filing of the execution petition by the decree-holder should be appropriated towards the principal amount and not towards the interest. The Himachal Pradesh High Court had taken a view that the amended provisions of Order 21 CPC gave such a right to the judgment-debtors because under Order 21 Rule (1) (5) CPC on any amount paid under clause (b) of sub-rule (1), the interest if any shall cease to run from the date of such payment. The Court took view the words "any payment" as used has to be given wider meaning and it means that every payment made would stop the interest to run from the date of such payment. Obviously this was directly opposite to what has been stated time and again by various courts and particularly by the Supreme Court. The learned Judge below thought that the decision of the Supreme Court in Meghraj vs. Bayabai which unambiguously had reiterated the well known principle that payments of all decretal amount by the judgment debtor must first be appropriated towards interest and then to principal as per the normal rule. The Supreme court gave all history as to how this rule has been in existence in Common law also. The learned trial Judge was of the view that due to amendment in the CPC the judgment of the Supreme Court was now not effective. Obviously the learned Trial Judge misunderstood the amended provision and also did not understand the principles stated and reiterated in the supreme Court judgment. In M. Mathai vs. Hindustan Organic Chemicals Ltd. the Surpeme Court has followed the decision in Megraj s case and has again reiterated the same principle. The Supreme Court has in fact stated that the result of amended rule in Order 21 CPC removes all doubts and the judgment debtor has not only to deposit the amount by stating as towards what part of dues he is depositing it but has also to send notice and see that it was duly served on the decree holder, with acknowledgment due. The principle has been incorporated in Indian Contract Act al

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