1992 Supreme(P&H) 989

PUNJAB & HARYANA HIGH COURT
K.P.Bhandari, J.
Anita Enterprises And Anr.
Versus
Muthoot M.George Chits (I) Ltd.And Ors.
Civil Revision No. 1966 of 1989,
Decided On : NOVEMBER 4, 1992

The court's decision was primarily based on the limitations of interest rates, the application of the Damdupat principle, and the executing court's role in determining the amount and allowing payment by installments.

Headnote:

Interest - Arbitration - The arbitrator could not grant interest lis pendence. The rate of interest could only be six percent in view of the law laid down by the court in Mathra Dass v. State of Punjab. The principle of Damdupat will apply in view of the decision of the Supreme Court given in Mhadagonda Ramgonda Patil and Ors. v. Shripal Balwant Rinade and Ors. The executing court will examine this matter and will not allow the claim exceeding double the principal amount. The prayer for payment by installments is allowed.

Fact of the Case:

The arbitrator's grant of interest lis pendence was not sustainable and the rate of interest was limited to six percent based on the court's precedent. The principle of Damdupat and the executing court's determination of the amount were crucial aspects of the case.

Finding of the Court:

The court accepted the revision to the extent indicated, allowing the payment by installments and directing the executing court to examine the matter and limit the claim to double the principal amount.

Issues: Arbitrator's grant of interest lis pendence, rate of interest, application of Damdupat principle, executing court's determination of the amount, and payment by installments.

Ratio Decidendi: The court's decision was influenced by the limitations on interest rates based on precedent, the application of the Damdupat principle, and the executing court's role in determining the amount and allowing payment by installments.

Final Decision: The revision was accepted to the extent indicated, allowing payment by installments and directing the executing court to examine the matter and limit the claim to double the principal amount.