UNION OF INDIA Vs. SHEELA DEVI

JUDGEMENT

(1.) SOME agricultural land of Smt. Sheela Devi, respondent, was acquired by the Union of India and she was awarded compensation for the same. While doing so, the arbitrator awarded interest also and passed the following order regarding, the same". . . . . The claimant is, therefore, entitled to interest on the entire amount of compensation from 25-8-1955 to 28-8-1956 at the rate of four per cent and upon the Balance after deducting Rs. 33,396/-/- from 28-8-1956 till the date of payment. . . . "

(2.) THE Union of India filed a regular first appeal against the decision of the arbitrator in this Court and the appeal is still pending. In this appeal the appellant made an application for the stay of the execution proceedings filed by the respondent. On this application, the following order was passed by a learned Single Judge of this Court" execution will go on, but the decretal amount win only be paid to the decree-holder on her furnishing security to the satisfaction of the executing Court for restitution. The security will only be accepted after notice to the Union of India. " It is common ground that the Union of India deposited the decretal amount in the treasury, but the same was paid to the respondent-decree-holder one month after the said deposit when she furnished the required security, as directed by this Court. The decree-holder claimed a further sum of Rs. 1,925/5/4 as under (i) Interest at 4 per cent per annum Rs. 1,608/-/-from 26-8-1959 to 20-2-1960 due for six months on Rs. 80,400/-/ -. (ii) Interest at the rate of 4 per cent Rs. 317/5/4. per annum for one month on Rs. 95,200/ -. Total amount Rs. 1,925/5/4.

(3.) SINCE the judgment-debtor denied the claim, the matter was tried by the learned Senior Subordinate Judge, Ludhiana. Before him, item No. (i) was not disputed and regarding item No. (ii) he held that the decree-holder was entitled to the said interest for the period of one month, after the deposit of the amount in the treasury and actual withdrawal by the decree holder. He consequently, held that the decree-holder was entitled to the entire sum of Rs. 1,925/5/4 as claimed by her. Against this order, the present execution first appeal has been filed by the Union of India.