IN THE HIGH COURT OF MADHYA PRADESH
Sanjay Dwivedi, J.
Ashok Lalwani v. State Bank of India
Miscellaneous Petition No. 894 of 2023 (J);
Decided on 12.8.2024*
Civil P.C., 1908 -- S. 34 -- interest on delayed payment -- undertaking for not withdrawing decretal amount during review petition -- cannot be treated to be interim order of High Court -- respondent bank not liable to pay interest. AIR 1967 SC 762 and (2020) 15 SCC 146 distinguished. [Paras 10 & 12
flfoy çfØ;k lafgrk] 1908 && èkkjk 34 && foyafcr lank; ij C;kt && fMØhr jde iqufoZy¨du ;kfpdk d¢ n©jku ugÈ fudkyus dk opucaèk && mPp U;k;ky; dk varfje vkns'k ugÈ ekuk tk ldrk && çR;FkÊ cSad C;kt dk lank; djus d¢ fy, nk;h ugÈA ,vkbvkj 1967 ,llh 762 rFkk ¼2020½ 15 ,llhlh 146 çÒsfnrA ¼iSjk 10 ,oa 12
ORDER
1. At the joint request of parties, the matter is finally heard.
2. By the instant petition filed under Article 227 of the Constitution of India, the petitioner is assailing the validity of order dated 7.1.2023 whereby the Executing Court rejected the application in which the petitioner/decree holder has claimed future interest over the amount unpaid to him and also not paid in time as specified by the High Court and, therefore, the respondent/Bank is not inclined to give interest for the period more than the period of six months from the date of order.
3. Shri Lalwani has submitted that the Executing Court restrained him to withdraw the amount of interest deposited by the respondent/Bank in pursuance of the order dated 6.12.2018 passed in Review Petition No.1596 of 2018 whereby the order passed by the High Court in M.P. No.1873 of 2017 vacating the interim order granted by the First Appellate Court on 15.5.2017 exercising the power provided under Order 41 Rule 5 of the Code of Civil Procedure and permitting the petitioner to withdraw the amount deposited by the respondent/Bank subject to furnishing a surety before withdrawing the amount, has been stayed.
4. However, in review petition preferred by the respondent/Bank i.e. Review Petition No.1596 of 2018, the High Court again vide order dated 6.12.2018 on an undertaking given by the learned counsel for the present petitioner for not withdrawing the amount so deposited by the respondent/Bank restrained the decree holder/petitioner from withdrawing the decretal amount deposited by the judgment debtor/Bank. The said review petition was disposed of vide order dated 10.11.2021 and modification to the typographical error as shown in paragraph-9 of the order passed by the Appellate Court in M.P. No.1873 of 2017 was directed to be rectified, but remaining order of the Court was maintained and as such, according to the petitioner, the decree holder withdrawn the amount only on 13.12.2021 and, therefore, the present petitioner is also claiming the interest over the decretal amount deposited by the judgment debtor/Bank w.e.f. 11.11.2018 till 13.12.2021.
5. Shri Lalwani has further submitted that because of the interim order granted by this Court in review petition, the petitioner has been deprived to withdraw the decretal amount deposited by the respondent/Bank and as such, applying the principles of actus curiae neminem gravabit, the respondent/Bank be directed to pay the interest to the petitioner for that period also.
6. However, learned counsel for the respondent/Bank has opposed the submissions made by the petitioner and submitted that it was not an interim order granted by the Court in the review petition on 6.12.2018, but the counsel for the petitioner himself has given an undertaking for not withdrawing the decretal amount from the Executing Court and, therefore, the principle on which the petitioner is relying upon is not applicable and the respondent/Bank cannot be held responsible and penalized for such undertaking given by the counsel for the petitioner himself.
7. I have considered the submissions made by the parties and also gone through the judgments on which the petitioner has placed reliance i.e. AIR 1967 SC 762 (Joint Family of Udayan Chinubhai, etc. v. Commissioner of Income-tax, Gujarat) and (2020) 15 SCC 146 (Odisha Forest Development Corporation Limited v. Anupam Traders and another) so also the principle relied upon by the petitioner i.e. actus curiae neminem gravabit.
8. However, looking to the facts and circumstances of the case and the order passed by the Court in review petition, it is clear that both the parties i.e. petitioner and respondent are fighting against each other for their rights and the petitioner claimed interest over the delayed payment as per section 34 of the CPC and also sought vacating the interim order granted in pending appeal by the Appellate Court exercising the power provided under Order 41 rule 5 of the CPC. Thereafter, against the order
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....
The court affirmed that the discretion to award interest must consider equitable principles and prevailing market rates.
The withdrawal of a petition under Article 227 of the Constitution of India does not affect the final decree, and the court may allow parties to explore the possibility of an amicable settlement.
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.
The validity of a final decree is upheld when a challenge to it is withdrawn, confirming the liabilities established by previous orders.
The Court can only exercise its power to review when there is an error apparent on the face of the record, and a review petition has a limited purpose and cannot be allowed to be an appeal in disguis....
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