UNION OF INDIA Vs. N MUGUNTHARAMAN

JUDGEMENT

(1.) Deputy Commissioner (Excise), Union Territory of Pondicherry, aggrieved by the order of the learned single Judge, dated 03.08.2001, made in W.P. No.13498 of 2001, has filed the above Writ Appeal.

(2.) The respondent herein - writ petitioner was the successful bidder in respect of Arrack Shop No.7B, Kannikoil in Pondicherry, for the lease year 1987-88. The bid amount was Rs.33,400/-. According to the petitioner, as per Rules, he paid three months kist as security deposit amounting to Rs.1,00,200/-. In addition to the same, he also deposited title deeds as immovable property security. He committed default in payment due to various reasons including some lapses on the part of the Department. In order to get back the documents/title deeds, he approached this Court for necessary direction. Based on the direction of this Court, he cleared the entire arrears of Rs.33,770/- in instalments. However, the Department demanded Rs.1,17,465/- towards interest. On verification, it was found that interest had been wrongly calculated at the rate of 12%. According to the writ petitioner, there is no justification for demanding interest at 12% in view of the fact that, as per the agreement, interest is payable only at the rate of 6 1/4% per annum. In those circumstances, he prayed for a direction to the Deputy Commissioner (Excise), Pondicherry, to return all the documents viz., title deeds furnished by him, without insisting payment of Rs.49,569/-.

(3.) Learned single Judge, by order dated 03.08.2001, following the order passed by him in an earlier writ petition, permitted the writ petitioner - respondent to pay interest at the rate of 6 1/4% in two instalments within a period of three months and also directed that, on such deposit, the Department shall release the documents furnished by the writ petitioner. Aggrieved by the said Order, the Deputy Commissioner (Excise), Pondicherry, has filed the above Appeal.