1971 (9) TMI 159 - SC - VAT and Sales Tax

Whether High Court erred in awarding interest on the principal amount claimed from the date of the suit? Held that - Appeal dismissed. High Court rightly exercised that discretion. It disallowed the interest claimed by the plaintiff-respondent up till the date of the suit. Before instituting the suit, the respondent had issued a notice to the appellant, calling upon the appellant to pay the money illegally collected from it; but despite that notice, the appellant failed to pay back the amount illegally collected from the respondent. That being so, in our opinion, the High Court was justified in awarding interest on the principal amount from the date of the suit.

Summary

The Supreme Court of India heard an appeal regarding the illegal collection of sales tax by the defendant from his customers. The trial court found the collection illegal but dismissed the suit as time-barred. The High Court decreed the principal amount claimed by the plaintiff with interest, which was upheld by the Supreme Court. The appellant failed to challenge the trial court's finding of liability. The appeal was dismissed, and costs were awarded to the respondent.