AB HOMES FINANCE LIMITED Vs. CUSTODIAN

JUDGEMENT

(1.) THIS Petition is for a return of Rs. 6 crores with interest thereon @ 25% per annum. It is admitted that this amount was advanced to Respondent No.

(2.) ON 21st May 1992. The only dispute is in respect of the rate of interest. The books of the 2nd Respondent show the interest to be at rate of 21% p. a. from 21st May 1992 upto 24th June 1992 and thereafter at the rate of 18% p.a. upto 30th June 1992. The 2nd Respondent got Notified on 2nd July 1992. 2.There is no written contract between the parties. Mr. Pandya is not able to show to the Court how interest at 25% is being claimed. In my view, since the 1st Respondents themselves admit interest at the rates mentioned above, they must pay interest at those rates.

(3.) THE question whether interest is payable after the date of the Notification and if so, at what rate, is left open to be decided at the time that actual distribution takes place.