Interest Amount Accrued On Fixed ... vs Royal Construction Co Pvt Ltd on 22 October, 2020

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Delhi High Court - Orders

Interest Amount Accrued On Fixed ... vs Royal Construction Co Pvt Ltd on 22 October, 2020

Author: Rajiv Sahai Endlaw

Bench: Rajiv Sahai Endlaw, Asha Menon

$~VC-22
*      IN THE HIGH COURT OF DELHI AT NEW DELHI
+      EFA(OS) 17/2018 & CM APPLs.10223/2020 (of the respondent
       for directions), 22258/2020 (of the respondent for release of
       interest amount accrued on fixed deposit)

       NATIONAL PROJECTS CONSTRUCTION
       CORPORATION                               ..... Appellant
                      Through: Mr. Rajat Arora and Ms. Renu
                               Bhandari, Advocates
               versus

       ROYAL CONSTRUCTION CO PVT LTD          ..... Respondent
                    Through: Mr.    Sanjay   Hegde,      Senior
                             Advocate, Dr. Sarvam Ritam
                             Khare, Advocate
       CORAM:
       HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
       HON'BLE MS. JUSTICE ASHA MENON
                  ORDER

%                 22.10.2020

       [VIA VIDEO CONFERENCING]

C.M.Appln. 22258/2020 (of the respondent for release of interest amount accrued on fixed deposit)

1. This order is in continuation of the order dated 10 th September, 2020.

2. The counsel for the appellant/non-applicant appears and has contended, (i) that there is a inter se dispute between the Directors of the respondent/applicant and litigation between them is pending;

(ii) that the security which has been earlier furnished for restitution of the amounts already released in favor of the EFA(OS) 17/2018 Page 1 of 4 respondent/applicant is itself in doubt; and, (iii) that this application has been filed by one of the Directors only, whose right and authority are under challenge by the other group of Directors.

3. For the purposes of this application, we are not concerned with the aforesaid contentions. The principal amount of the fixed deposit, in which the money deposited by the appellant/non- applicant in this Court to seek stay of execution was kept, has already been ordered to be released to the respondent/applicant vide order dated 7th February 2020 and has already been released and this application is only for release of the interest accrued thereon.

4. There is no challenge to the earlier order dated 7th February, 2020 or to acceptance of securities furnished in pursuance thereto. Thus today the appellant/non-applicant cannot oppose the release of the interest amount stated to be in the sum of about Rs. 15 lakhs only and the Senior Counsel for the respondent/applicant is correct in his contention that the same remained to be released owing to inadvertent omission from mention in the order dated 7th February, 2020.

5. As far as the doubt expressed by us in the order dated 10th September 2020, with respect to the personal undertaking of the Managing Director of the respondent/applicant who was stated to be over 80 years old, is concerned, we have during the hearing been informed that besides the said undertaking, there are other securities also for restitution of the amount released and to be released in favor of the respondent/applicant.

EFA(OS) 17/2018 Page 2 of 4

6. With respect to the inter-se dispute between the Directors of the respondent/applicant, we may also state that the release will be in the name of the respondent/non-applicant Company only which is a separate juristic person and how the monies received by the respondent/applicant are to be dealt with, is not in the domain of this proceeding.

7. The application is accordingly allowed.

8. The interest amount, accrued on the fixed deposit, prior to the date of release in favor of the respondent/applicant of the principal amount thereof together with further interest, if any, accrued thereon be released to the respondent/applicant, on the respondent/applicant furnishing security for restitution of the additional amount to be so released, to the satisfaction of the Registrar General of this Court.

9. The respondent/applicant to, within two weeks, file the necessary documents in this regard with advance copy to the counsel for the appellant/non-applicant.

10. The Senior Counsel for the respondent/applicant states that the securities already furnished cover the additional amount to be released also.

11. This aspect be gone into by the worthy Registrar General of this Court.

12. List before the Registrar General for the said purpose, whether physically or virtually, on 3rd December, 2020.

13. The application is disposed of.

EFA(OS) 17/2018 Page 3 of 4

EFA(OS) 17/2018 & CM APPL.10223/2020 (of the respondent for directions)

14. On enquiry, it is informed that the only controversy in the appeal is with respect to the appropriation of the amount i.e. whether towards interest or towards principal.

15. Though in the light of above, it appears that the appeal can also be heard today but the counsel for the appellant states that besides this appeal, another EFA (OS) arising from the same execution petition from which this EFA arises as well as a Civil Appeal in the Supreme Court arising out of an order in the said EFA (OS) are also pending and he needs time to consider.

16. Steps, if any, required be taken in the other proceedings aforesaid qua this appeal be taken well in advance before the next date of hearing. Else on the next date of hearing, this appeal shall be heard notwithstanding the pendency of other matters.

17. List for hearing, physically/virtually, on 20th January, 2021.

RAJIV SAHAI ENDLAW, J.

ASHA MENON, J.

OCTOBER 22, 2020 akanshasingh EFA(OS) 17/2018 Page 4 of 4

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Delhi High Court - Orders