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M/S Bls Sumer Jv vs Delhi State Industrial & ... on 17 March, 2021

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                         $~39
                         *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                         +      OMP (ENF.) (COMM.) 122/2018
                                M/S BLS SUMER JV                            ..... Decree Holder
                                                  Through Mr Ashish Dholakia, Advocate with
                                                  Mr Gautam Bajaj, Mr Akash Panwar, Advocates.

                                                  versus

                                DELHI STATE INDUSTRIAL &
                                INFRASTRUCTURE DEVELOPMENT
                                CORPORATION LTD.                     ..... Judgement Debtor
                                              Through Ms Anusuya Salwan, Advocate with
                                              Mr Abhishek Pundit, Mr Chaitanya Bansal,
                                              advocates for DSIIDC.

                                CORAM:
                                HON'BLE MR. JUSTICE VIBHU BAKHRU
                                        ORDER

% 17.03.2021

1. Mr Dholakia, learned counsel appearing for the Decree Holder states that there are, essentially, two issues, which fall for consideration of this Court. First is with regard to the appropriation of the payments made. He submits that the Decree Holder has appropriated the payments received from the Judgment Debtor towards interest and therefore, certain payments are still due.

2. The second issue is with regard to the deductions made by the Judgement Debtor. He submits that the nature of the amount due is judgment debt and therefore, no deduction on account of TDS, DVAT, interest on DVAT or labour cess could be made.

3. After some arguments, Mr Dholakia accepts that insofar as labour cess is concerned, the same would in any event be a liability and therefore credit for the same may be given to the Judgment Debtor.

4. Ms Salwan also submits that there is no question of debting the Decree Holder for any interest on the DVAT as the same is not on account of the Decree Holder.

5. Insofar as the first issue is concerned, the law is well settled. The payments made by the Judgment Debtor are first to be appropriated towards interest and not towards debt. The judgment Debtor would, therefore, require to recalculate the amount payable keeping in view the aforesaid principle. [See: M/s Jayaswals Neco Ltd. v. Union of India and Anr.: Ex. P. 224/2010 decided on 02.08.2016]

6. Insofar as the interest on DVAT and Labour Cess is concerned, the said issue stand addressed as observed above.

7. The only question that remains to be addressed is with regard to the credit available for TDS and DVAT deducted and deposited by the Judgment Debtor.

8. Mr Dholakia seeks time to take instructions whether the benefit can be drawn by the Decree Holder in respect of the said deductions. The Judgment Debtor shall inform the Decree Holder as to the precise date on such deposits have been made with the respective Tax Authorities.

9. List for further consideration on 15.04.2021.

VIBHU BAKHRU, J MARCH 17, 2021 pkv Signature Not Verified Digitally Signed By:DUSHYANT RAWAL