STANDARD CHARTERED BANK Vs. PURE DRINKS LTD

JUDGEMENT

(1.) These two appeals bearing numbers FAO (OS) 110/1999 and FAO (OS) 216/1999 arise out of orders dated 8-4-1999 and 6-5-1999 respectively in Suit No. 2311/1993. The main question that emerges from the present appeals is whether a bank is directed to keep specified amounts in fixed deposit following an order of this Court and has been enjoying the benefits thereof is entitled to pay interest for the utilisation of the said amount.

(2.) By the order dated 8-4-1999, the appellant-bank was directed to deposit in the Court Rs. 2.57 crores with interest within two weeks from the date of the order.

(3.) The order dated 6-5-1999 was passed on an IA No. 6937/1994, under S. 151, C.P.C. made by the appellant for recall of an order dated 9-5-1994 whereby the amount lying frozen with the appellant-Bank was directed to be kept in fixed deposit for a period of 90 days. The said amounts have been lying with the appellant-bank since 9-10-1993 in the form of bank drafts and the bank has been enjoying the benefit of the same since then.