(2013) 1 Supreme Court Cases 243<\/p>\n\n\n\n
BHARAT HEAVY ELECTRICALS LIMITED Vs R.S. AVTAR SINGH AND COMPANY<\/p>\n\n\n\n
A. Civil Procedure Code, 1908 \u2013 Or. 21 Rr. 1(1), (4) and (5) r\/w S. 34 \u2013 Execution of money decree \u2013 Payment of interest \u2013 Part-payment of decretal amount deposited in court pursuant to its orders \u2013 Principle of appropriation applicable \u2013 Primacy of terms of decree\/award \u2013 Decree consisting of award amount of 1.42 crores with interest @ 12% p.a. thereon from 12-3-1981 up to date of decree i.e. 31-51985 and in the event of non-payment, calculation of future interest at 12% p.a. from date of decree till realisation of award amount \u2013 Court directing payment of 1 crore as condition for grant of stay of decree \u2013 Execution of payment kept in abeyance by deposit of further amount of 1.95 crores \u2013 Appropriating payments first against interest and adjusting balance amount against principal, Single Judge of High Court ordering execution by calculating subsequent interest only on outstanding principal amount dismissing objections of appellant judgment-debtor that by virtue of payments made entire decretal amount was fully satisfied \u2013 Sustainability Held, it is the decree which has to be applied in letter and spirit to find out whether stipulations therein were duly fulfilled by judgment-debtor – Both, award of arbitrator and rule of court make a clear distinction between award amount and interest payable on award amount \u2013 When such a clear distinction was consciously made it cannot be stated that award amount and interest merged together and became payable as one sum which thereby became the decretal amount \u2013 Having regard to specific terms of part-payments were effected by appellant after date of decree i.e. 31-5-1985 on 18-10-1985 and thereafter on 13-12-2000 \u2013 Single Judges of High Court, held, correctly upheld action of respondent decree-holder in adjusting amounts received first against interest which had become due as on that date, and adjusting only balance amount against principal \u2013 Hence, Division Bench of High Court rightly affirmed Single Judge\u2019s order which applied rule of construction of Or. 21 R. 1 based on Constitution Bench Ss. 29, 14 and 17 \u2013 Enforcement of award \u2013 Payment of interest \u2013 Principle of appropriation applicable \u2013 Arbitration and Conciliation Act, 1996 \u2013 Ss. 31 and 36 \u2013 Contract Act, 1872 \u2013 S. 59 \u2013 Interest Act, 1978, S.3(3)(C)<\/p>\n\n\n\n
B. Civil Procedure Code, 1908 \u2013 Or. 21 Rr. 1(4) & (5) and S. 34 \u2013 Interest, cessation of \u2013 Payment made towards satisfaction of decree \u2013 Part-payment by judgment-debtor by deposit in court \u2013 Liability to pay further interest, held, ceases thereafter on that part of principal sum which stands as paid after appropriation of amount which has been paid \u2013 Hence, held, since deposit of amount pursuant to order of Division Bench of High Court was made and was also withdrawn by respondent decree-holder from the date of service of notice as contemplated in Or. 21 R.1(2) the same was deemed to have been effected \u2013 Therefore, applying Or. 21 R.1(4), insofar as cessation of interest is concerned, same would operate upon that part of principal sum which stood paid \u2013 Hence, after last deposit of payment by judgment-debtor, decree-holder calculating\/claiming interest on entire award amount ( instead of on outstanding principal amount ( 1,42,96,318) 1,19,61,134), held, rightly rejected by Single Judge and Division Bench of High Court<\/p>\n\n\n\n
C. Civil Procedure Code, 1908 \u2013 Or. 21 Rr. 1(1)(a), (b) and (c) \u2013 \u201cAll money payable under a decree\u201d \u2013 Connotation of \u2013 Held, words used in sub-rule (1) mean whatever money that is due and payable under a decree, which could be paid in the manner stipulated in cls. (a),(b) and (c) of the sub-rule (1) \u2013 What is required to be scrutinized is as to how decree has been made while granting relief as regards payment \u2013 Or. 21 R.1(1) does not refer to the decretal amount: rather the expression used is \u201call money payable under a decree\u201d<\/p>\n\n\n\n
D. Civil Procedure Code, 1908 \u2013 Or. 21 Rr.1(1), (2), (4) and (5) \u2013 Execution of money decrees \u2013 Rule of appropriation \u2013 General principles as laid down by the Constitution Bench in Gurpreet Singh, (2006) 8 SCC 457, summarized.<\/p>\n\n\n\n
E. Interest Act, 1978 S. 3(3)(C) \u2013 Applicability \u2013 Decree directing payment of interest on delayed payment of award amount \u2013 Interest calculated as per decree of Court which made arbitral award rule of court \u2013 Challenge to, on basis it amounted to awarding interest upon interest \u2013 Held, there is no scope to apply S. 3(3)(c) as the controversy was subsequent to passing of decree where direction for payment of interest on award amount had been spelt out \u2013 Challenge is not to decree on footing that it was in violation of S. 3(3)(c), hence rejected \u2013 Civil Procedure Code, 1908 \u2013 S. 34 and Or. 21 R. 1- Arbitration Act, 1940 \u2013 Ss. 29, 14 and 17 \u2013 Arbitration and Conciliation Act, 1996, Ss. 31 and 26<\/p>\n","protected":false},"excerpt":{"rendered":"
(2013) 1 Supreme Court Cases 243 BHARAT HEAVY ELECTRICALS LIMITED Vs R.S. AVTAR SINGH AND COMPANY A. Civil Procedure Code, 1908 – Or. 21 Rr. 1(1), (4) and (5) r\/w S. 34 – Execution of money decree – Payment of interest – Part-payment of decretal amount deposited in court pursuant to its orders – Principle […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2612","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n