Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Code of Civil Procedure 1908 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Code of Civil Procedure, 1908 – Order XXI, Rule 1 – Arbitration and Conciliation Act, 1996 – ss. 34 and 37 – Interest on award – By award dated 14.04.2000, appellant was held liable to pay Rs. 14,49,300/- to respondent with interest @ rate of 18% per annum from date of award, till payment – Objections filed by appellant u/s. 34 were dismissed – Appeal filed u/s. 37 – High Court passed order whereby, on appellant depositing 50% of the awarded amount within 10 days from date of the order before executing court, the execution proceedings for the balance amount were to remain stayed – Respondent was entitled to withdraw the deposited amount after furnishing personal undertaking for restitution of the amount – Pursuant to the interim order, appellant deposited Rs. 7,78,280/- – Respondent withdrew this amount after furnishing the personal undertaking on 08.11.2001 – Whether respondent entitled to interest @ the rate of 18% p.a. as per award on the principal amount of Rs. 14,49,300/- till decision of appeal u/s. 37 of the Act or interest @ the rate of 18% p.a. is payable on the net principal amount after set-off/adjustment of interest due on 08.11.2001 from Rs.7,78,280/ - which was withdrawn by respondent on 08.11.2001 – High Court by impugned order held that in terms of Order XXI, Rule 1, sub-rules (4) and (5) of CPC, the appellant having failed to give notice for deposit of amount of Rs. 7,78,280/-, the respondent would be entitled to interest @ the rate of 18% per annum, even on the sum of Rs. 7,78,280/-, which was withdrawn by him, till decision of the appeal under u/s. 37 – Held: When the deposited amount is withdrawn and gets credited in the account of the decree holder, he is not entitled to interest on the deposited amount, even when there is failure on the part of the judgment debtor to issue notice of deposit – In absence of notice, the interest would cease to run from the date when the amount is transferred /credited in the account of the decree holder – If notice is issued, interest ceases to run from the date of service of notice. |
Judge | Hon'ble Mr. Justice Sanjiv Khanna |
Neutral Citation | 2022 INSC 1263 |
Petitioner | Nepa Limited Through Its Senior Manager (legal) |
Respondent | Manoj Kumar Agrawal |
SCR | [2022] 14 S.C.R. 446 |
Judgement Date | 2022-12-08 |
Case Number | 3984 |
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