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IN THE HIGH COURT OF BOMBAY
SHARMILA U.DESHMUKH
Daulat Shetkari Sahakari Sakhar Karkhana Ltd. Thr. Managing Director – Appellant
Versus
State Of Maha. Thr. Prin. Sec. – Respondent
JUDGMENT :
1. Rule. With Consent, rule made returnable forthwith in all Petitions and taken up for final hearing.
THE CHALLENGE:
2. Exception is taken to Collector’s order dated 31st March, 2023 computing the amount payable to the Respondent No. 4-Sahyadri Co- operative Credit Society Ltd in Writ Petition No.5742 of 2023 and Respondent No. 4-Navhind Co-operative Credit Society Ltd. in Writ Petition No.5743 of 2023, by applying contractual rate of interest and directing payment of Rs.19,60,00,000/- and Rs.34,16,00,000/- respectively from the auction proceeds, which were deposited in this Court in the year 2011 and transferred to the office of Collector vide order dated 27th February, 2023.
THE ISSUE:
3. The issue arising for consideration is whether the deposit of auction proceeds in this Court amounts to payment in discharge of debt relieving the Petitioner from the liability of interest payment at contractual rate from the date of deposit.
PARTIES TO THE PROCEEDINGS:
4. Writ Petition No.5742 of 2023 and Writ Petition No.5743 of 2023 have been filed by the Sugar Factory and Writ Petition No.5874 of 2023 is filed by the sugarcane growers raising common issues and claiming right in the bala
The deposit of auction proceeds in court does not discharge the debt, and interest continues to accrue at the contractual rate until payment is received.
Interest on decreed amounts will not cease upon deposit in a court other than the executing court; actual payment to the decree holder is required to stop interest accrual.
Interest ceased to run on the deposited amount after the dismissal of FAO No. 284/2005 on 04.12.2008.
Restitution principles require balancing the detriment suffered by one party against the benefits gained by the other, particularly in awarding interest on deposits subject to withdrawal conditions.
The court ruled that failure to deposit the mandatory 25% bid amount in a court auction renders the sale void, necessitating a resale, and coercive measures against the auction purchaser are not perm....
Payment recognized under decree requires unconditional compliance; bank guarantees do not suffice, and interest continues until funds are available to the decree holder.
The court ruled that amounts deposited under a decree should first be applied towards interest and then to the principal sum unless otherwise directed in the decree.
Court deposit of arbitral award amount with interest during Section 34 stay proceedings constitutes payment to decree-holder's credit, ceasing post-award interest from deposit date; Order XXI Rule 1(....
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