STATE OF KARNATAKA Vs. GOPAL RAMACHANDRA NADAGOUDA

JUDGEMENT

(1.) This is an old litigation carried on by the State of Karnataka and the dispute centers around a long history of sixty years. But it is unnecessary for this Court, as rightly pointed out by the High Court in the impugned Judgment, to recount the various developments and the manner in which the present position has arisen as now it is confined within a very narrow ambit. From the arguments advanced by Mr. Sanjay R. Hegde, learned counsel appearing on behalf of State of Karnataka, the appellant herein, we only need to consider the penultimate directions in the impugned order. Accordingly, for the proper disposal of the present appeals, that portion of the impugned Judgment of the High Court may be reproduced as under :-

(2.) Before us, the only submission that was raised by Mr. Sanjay R. Hegde, learned counsel appearing for the State of Karnataka is whether the judgment of the High Court directing the State to pay interest at the rate of 15 per cent per annum to the respondents from the date of its order i.e. 15th of November, 1996 up to the date on which the amount was actually tendered in the Court, was justified.

(3.) In view of the aforesaid stand taken by the learned counsel appearing for the appellants, we need not go into the facts of these appeals in detail nor are we concerned with any other ground except the ground mentioned earlier. On behalf of the appellants, Mr. Hegde contended that in view of the nature of the claim and in view of the fact that the State of Karnataka had diligently pursued these litigations all through, it was improper on the part of the High Court to hold that the State was liable to pay interest at the rate of 15% P.A. as the said rate of interest if accepted and if the State is directed to pay it to the respondents, would have the effect of nearly tripling the decretal amount. Accordingly, it was submitted that the rate of interest may be modified to 6% P.A.