Revision Petition Dismissed: Court Upholds Interest Liability on Non-Encashed Cheques.
05 December 2024
Arbitration Law >> Business & Commercial Law | Civil Revision >> Civil & Consumer Law
In the matter of Union of India Chief Administrate Officer, New Delhi Vs M/s Parisudh Machines Pvt. Ltd., Ghaziabad the Revision Petition filed by the Petitioner/Judgment Debtor was dismissed by the court, which challenged the order directing the deposit of Rs. 1,73,53,686/- within 15 days. The Petitioner argued that they had already deposited the entire decretal amount along with interest in two RBI cheques (totaling Rs. 83,65,560/-) in 2020. However, the cheques were not encashed or deposited in the court account, thus the amount was not made available for withdrawal by the Respondent/Decree Holder.
The court held that since the cheques had not been encashed, the liability for post-award interest continued, as the amount was not made available for the Decree Holder to withdraw. The court rejected the Petitioner's contention that the interest should cease from the date of deposit, and clarified that the failure to deposit the amount in the court account meant the interest liability remained. The Revision Petition was dismissed, with a note allowing both parties to point out discrepancies in the Civil Nazir’s calculations.
Arbitration and Conciliation Act, 1996