KALYANMAL MILLS LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS revision has been directed against an order passed in C. S. No. 42A of 1986, dated August 27, 1990, by the Tenth Additional District Judge, Indore, whereby the learned judge refused to direct the payment of interest to the petitioner.

(2.) THE brief facts of the case are that respondent No. 3, namely, National Textile Corporation, Indore, filed a suit in the court for a declaration and injunction in respect of the income-tax refund of Rs. 1,60,000. Respondent No. 3 also applied for an injunction restraining payment of this amount to the applicant, Messrs. Kalyanmal Mills Ltd THE trial court, by the impugned order dated March 24, 1984, directed the payment of this amount to the petitioner. Against this order, respondent No. 3 preferred a Miscellaneous Appeal No. 178 of 1984 which was decided by this court on January 30, 1987. THE court has directed that the amount of Rs. 1,60,000 be released to the petitioner on furnishing a bank guarantee of like amount. A bank guarantee has, accordingly, been furnished and the amount has been paid to the present petitioner. In the meantime, it transpired that interest has also become due on this amount. THE petitioner, accordingly, applied to the trial court that this interest must also be paid to the petitioner. THE trial court has declined to pass the order saying that it was for the parties to seek an order of the High Court in this matter. Being aggrieved by the impugned order of the trial court, this revision has been filed on the ground that the principal amount having been refunded to the petitioner, the interest must follow the principal amount and the interest must also be paid to the petitioner on the same terms and conditions. It is a case of non-exercise of jurisdiction by the court below.