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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH AT NAGPUR
ANIL L.PANSARE
P.J. Rathod, M.Sc. (Prabhubhai s/o Jadhavji Rathod) – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. payment and interest accrual inquiry (Para 2 , 3 , 12 , 13) |
| 2. arguments on withdrawal and interest (Para 4 , 5 , 6) |
| 3. judgment on cpc payment conditions (Para 8 , 9 , 10 , 18) |
| 4. conditions for payment and interest cessation (Para 19 , 20 , 21) |
| 5. conclusion on appeal and interest entitlement (Para 23 , 24) |
JUDGMENT :
ANIL L. PANSARE, J.
Issue Rule returnable forthwith. Learned counsel waives service of Rule on behalf of the respondents. With consent of learned counsel for the parties, the petition is taken up for final hearing.
2. The question that arises for consideration is, whether interest will stop accruing once the amount awarded to the Decree Holder is deposited by the Judgment Debtor in the Court other than the Executing Court?
3. According to the petitioner - Decree Holder, the liability of the Judgment Debtor to pay interest on the amount awarded would not stop on the date of its deposit in the Court but would instead continue till actual payment is made to him.
4. In support of his contention, Mr. C. B. Dharmadhikari, learned counsel for the petitioner, has relied upon judgment passed by Division Bench of Delhi High Court, in Delhi Development Authority .Vs.
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.
Payment recognized under decree requires unconditional compliance; bank guarantees do not suffice, and interest continues until funds are available to the decree holder.
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 amounts deposited under a decree should first be applied towards interest and then to the principal sum unless otherwise directed in the decree.
The main legal point established in the judgment is that interest ceases to run on the amount paid to the decree holder upon withdrawal, and the judgment debtor is not liable to pay interest on the a....
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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