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Punjab & Sind Bank vs K S Sethi on 24 December, 2021

Author: Vipin Sanghi

Bench: Vipin Sanghi, Jasmeet Singh

                          $~11
                          *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +      LPA 968/2013 & CM APPL. 37895/2021
                                 PUNJAB & SIND BANK                                  ..... Appellant
                                                    Through:     Ms. Kittu Bajaj, Adv.
                                                    versus

                                 K S SETHI                                           ..... Respondent
                                                    Through:
                                 CORAM:
                                 HON'BLE MR. JUSTICE VIPIN SANGHI
                                 HON'BLE MR. JUSTICE JASMEET SINGH
                                         ORDER

% 24.12.2021 The matter has been put up before the Court in an office note. It is pointed out that in terms of the orders passed by this Court, the interest accruing on the Fixed Deposits created in the name of the Registrar General of this Court of the amount deposited by the appellant, is being credited into the account of the respondent. However, a legal issue has arisen since there is no tax that has been deducted at source on the interest income earned on the Fixed Deposits on account of the fact that the Fixed Deposits are standing in the name of Registrar General of this Court.

To resolve this issue, we direct that the existing Fixed Deposits along with upto date accrued interest may be dissolved forthwith, and instead the same may be created for the amount realised on dissolution of the two Fixed Deposits in the name of the respondent. The said Fixed Deposits shall, however, remain with the Registrar General of this Court, and shall not be released to the respondent, unless the Court so directs.

The creation of the said Fixed Deposits in the name of the respondent shall not create any equity in his favour, and the release of the said Fixed Deposits / amounts covered thereby shall abide by the decision of the appeal.

The respondent undertakes that in case the appeal is allowed, he will not claim the amounts covered by the said Fixed Deposits, and shall cooperate in dissolving the same, so that the amounts could be refunded to the appellant.

Accordingly, the Registry is directed to take steps in this regard forthwith.

VIPIN SANGHI, J JASMEET SINGH, J DECEMBER 24, 2021/ 'ms' Signature Not Verified Digitally Signed By:AMIT ARORA Signing Date:25.12.2021 13:32:17