K C SHARMA Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) By this order, I intend to deal with the objections raised by JD regarding calculations of interest while considering the total decretal amount payable by the JD. Award in this case was passed by the Arbitrator awarding 18% per annum simple interest from the date of award till payment to the claimant. Against the award the JD preferred objections which were upheld by Single Judge of this Court and the award was accordingly modified. However, decree holder preferred an appeal before the Division Bench and the Division Bench reversed the order of the Single Judge and the award was restored to its original position. JD then preferred an SLP before the Supreme Court. However, after the appeal of decree holder was allowed by the Division Bench, this Court issued warrants of attachment and the decretal amount was attached and recovered from the JD but before it could be paid to the decree holder, the JD got an interim injunction from the Supreme Court and in view of this injunction, amount could not be paid to the decree holder. After dismissal of the SLP, the amount lying in the Court was paid to the decree holder.

(2.) The contention of the JD is that JD is not liable to pay further interest from the date when amount was attached till the injunction was vacated and SLP was dismissed by the Supreme Court.

(3.) Where a decree holder is compelled to file an Execution Petition, since the amount is not voluntarily paid by the JD, the JD is liable to pay interest in accordance with the decree upto the date of recovery of amount from the JD. Once the amount is recovered from the JD, the liability of JD to pay the interest normally is not there. But where JD prefers an appeal or SLP and obtains a stay against disbursement of the amount to the decree holder, then the recovery effected from the JD is of no use for the decree holder and the amount in fact remains in the Court as property of the JD, subject to final outcome of the SLP or appeal. The interest as awarded under the decree does not stop because of the fact that amount was recovered from the JD. Interest would stop only if the amount recovered can be paid to the decree holder without hindrance. If the amount recovered cannot be paid to the decree holder because of an injunction obtained by the JD, the interest cannot stop running.