Strength and Support Builders Pvt. Ltd. vs Delhi Development Authority

Manmohan Singh, J.—This execution petition has been filed by the decree holder for execution of the order passed by this Court on 18th September, 2007 whereby judgment debtor is directed to pay the interest at the rate of 10% per annum. The decree holder prayed for issuing warrants of attachment of the properties of judgment debtor as set out in schedule of properties and sale thereof for realization of the sum of Rs. 20,15,109.00P and future interest at the rate of 10% per annum up to the actual date of payment to the decree holder towards satisfaction of the decree dated 18th September, 2007 passed by this Court in CS(OS) No. 2189-A/1997.

The decree holder has filed the calculations of the amount due from judgment debtor as under:

Principal Amount in award Rs. 18,74,558.41p 2. Interest @ 10% from 23.9.1997 to 13.06.2008 (+) Rs. 20,02,707.48p ---------------------- 3. TOTAL Rs. 38,77,266.00p 4. Less paid by JD on 13.6.2008 (-) Rs. 20,11,332.00p ----------------------- 5. Balance Rs. 18,65,934.00p ----------------------- 6. Interest @ 10% from 14.6.2008 Upto 31.3.2009 (+) Rs. 1,49,275.00p ----------------------- 7. Total balance amount due from J.D. as on 31.3.2009 Rs. 20,15,109.00p -----------------------

The Arbitrator in his award dated 23rd September, 1997 awarded pendent elite interest at 15% per annum to the tune of Rs. 6,57,262.80p from 15.5.1993 i.e. the date of filing of the statement of claims till 15.09.1997. It was further held that on failure to make the payment of the awarded amount within three months from the date of the award, the respondents would be liable to pay future interest at 15% per annum on the amount awarded from the date of the award till the payment of award or decree, whichever is earlier. Vide order dated 18th September, 2007 the learned Single Judge of this Court has modified the award by reducing the interest rate awarded to the decree holder from 15% to 10% per annum in the following words:

Insofar as the question of interest is concerned, the learned arbitrator has awarded interest at the rate of 15% per annum, which in my view is on the excessive side. This is taking into consideration the fact that the interest rates have dropped and declined from what they used to be in early 90''s to what they are at present. At one stage the interest rates had fallen to as low as 6% per annum. Therefore, taking into account the totality of the circumstances, I think that the appropriate rate of interest would be 10% per annum. The interest for the future shall also be at the rate of 10% per annum from the date of the decree.

According to the judgment debtor, there is no amount due to be paid to the decree holder. The calculation as per judgment debtor is as under:

Principal Amount Rs. 15,22,795.55 Pendent elite interest Rs. 3,49,832.45 @10% from 15.5.93 to 15.9.97 ------------------- Total Rs. 18,72,628.00

ADD Future interest @ 10% p.a. from 18.9.07 to 13.6.08 Rs. 1,38,694.00

Total Rs. 20,11,322.00 Less Paid vide ch. Dt. 13.6.08 Rs. 20,11,322.00 (Rs. 20,11,322.00 - I. tax Rs. 89,130.00 = Rs. 19,22,192.00) ------------------- Difference NIL

It is contended by the Judgment Debtor that future interest has to be calculated from the date of judgment instead of date of award, as this Court vide judgment dated 18.9.2007 has ordered that the interest for the future shall be @ 10% p.a. from the date of decree.

In my view, the contention of the judgment debtor that future interest shall be calculated from the date of court order i.e. 18th September, 2007 to the date of payment i.e. 13th June, 2008 is incorrect. The decree holder has rightly calculated the amount of future interest from the date of award i.e. 23rd September, 1997 to 31st March, 2009 after deducting the amount of Rs. 20,11,322/- less income tax paid by the judgment debtor on 13th June, 2008. The total balance amount due from the judgment debtor as on 31st March, 2009 is Rs. 20,15,109/-.

I find no force in the contention of the judgment debtor. He is hereby directed to make the payment of Rs. 20,15,109/- within two weeks from today. In failure to do so, warrants of attachment be issued by attaching the account No. 10030/10039 of Judgment Debtor in State Bank of India, Vikas Sadan, INA, New Delhi to the extent of Rs. 20,15,109/- maintained by DDA and attached amount shall be paid to the decree holder within four weeks from the date of attachment.

This execution petition is disposed of in the above terms.