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Industrial Credit And Development ... vs Smt. Smithaben H. Patel And Others on 10 February, 1999

9. So far as the payment made by Petitioner towards lease premium and interest and adjustment thereof by Respondent No.1 is concerned, Mr. Samdani relied upon the decision of the Apex Court in Industrial Credit Development Syndicate v. Smithaben H. Patel [(1999) 3 SCC 80] to contend that Respondent No.1 was right in adjusting the amount paid by the Petitioner firstly towards the penal interest, then towards the interest and lastly towards the principle. Having gone through said decision, we are unable to buy the submission of Mr. Samdani. The Apex Court in this case was considering the question as to how the adjustment is to be made by the decree-holder under various heads comprising of principle, cost and interest. The Apex Court held that the payment has to be adjusted strictly in accordance with the direction of the Court, if any and in the absence of such direction the adjustment has to be made subject to an agreement to the contrary between the parties, firstly towards the interest and cost and thereafter towards the principle amount. The Apex Court was dealing with a situation about the adjustment of principle, cost and interest in pursuance of the decree of civil Court. So far as the present case is concerned, the liability of the parties has arisen in out of purely contractual obligation to pay interest, penal interest and premium as specified by clause 2(a) of the said supplementary lease deed. This patilsr 10/ 15 ::: Uploaded on - 20/02/2019 ::: Downloaded on - 20/03/2019 09:10:33 ::: Wpld-212/19.
Supreme Court of India Cites 11 - Cited by 47 - Full Document
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