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National Insurance Co. Ltd,, Calcutta vs Life Insurance Corporation Of India on 11 December, 1962

In National Insurance co. Ltd., Calcutta vs. Life Insurance Corporation of India [1963 Supp.(2) SCR 9711 the business of insurance carried on by the appellant was nationalised under Life Insurance Corporation Act, 1956 and stood vested in the Life Insurance Corporation of India on and from September 1, 1956, The appointed day. The dispute between the parties related to the compensation payable to the appellant corporation of n such vesting and one of the issues was whether interest was payable on such compensation. There was no express provision for payment of interest as the life insurance business vested in the life Insurance corporation. The Tribunal had held that it had no jurisdiction to award interest since there was no express provision in the act. It was conceded during the hearing in this Court that the corporation agreed to pay interest awardable but the dispute was about the rate of interest, the amount on which it is payable and the date from which it should be given. Considering the contentions in that background, this Court had held that the property remained just where it was. The purchaser has the money in his pocket and the seller has the estate vested in him but the character changes in a court of equity; the seller becomes the owner of the money and the purchaser becomes the owner f the estate. On entering possession, the purchaser becomes entitled to the rent but if he has not paid the price, interest in equity is payable by him on the purchase price which belongs to the seller.
Supreme Court of India Cites 16 - Cited by 30 - M Hidayatullah - Full Document

Prem Nath Kapur & Anr. Etc vs National Fertilizers Corporation on 29 November, 1995

This distinction was pointed out n catena of decisions including the one referred by a Bench of three Judges in Prem Nath Kapur & Anr. v. National Fertilizers Corporation of India Ltd. & ors.[(1996)2 SCC 71] . For parity of reasons, without further discussion it was held that interest also was not payable. We, therefore, respectfully agree with the ratio in Harikishan khosla's case that the Act omitted to pay solatium and interest , in addition to compensation. The omission by the legislature, as stated earlier, is deliberate.
Supreme Court of India Cites 36 - Cited by 154 - K Ramaswamy - Full Document
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