MATHUNNI MATHAI Vs. HINDUSTAN ORGANIC CHEMICALS LTD

JUDGEMENT

(1.) The question of law that arises for consideration in these appeals directed against the judgment and order of the High Court of Kerala is whether the decretal amount deposited by the judgment-debtor in pursuance of an order passed by this Court is to be adjusted towards the principal amount due first or against interest and other charges.

(2.) The amounts due under the Land Acquisition Award passed by the Court in 1985 comprised of enhanced market value, solatium at 15% and interest at 4% on the additional amount. In cross appeal filed by the appellant, the State and the company the enhancement of market value was affirmed but the appellant was further granted solatium at 30% of the entire market value, additional compensation under Section 23(1A) of the Land Acquisition (Amendment) Act, 1984 and interest under the amended Section 28 at 9% for the first year and 15% for the subsequent years. The company challenged the order of the High Court by way of Special Leave Petition in this Court in which an order was passed to the following effect:

(3.) The right of the decree-holder to appropriate the amount deposited by the judgment-debtor, either in Court or paid outside, towards interest and other expenses is founded both on fairness and necessity. The Courts and the law have not looked upon favourably were the judgment-debtor does not pay or deposit the decretal amount within the time granted as one cannot be permitted to take advantage of is own default. Therefore, the normal rule that is followed is to allow the deposit or payment if it is in part to be adjusted towards the interest due etc. In Meka Venkatadri Appa Rao Bahadur Zamindar Garu v. Raja Parthasarathy Appa Rao Bahadur Zamindar Garu, AIR 1922 PC 233 the rationale was explained thus:-