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Issues:
1. Whether interest can be claimed on the amount of drainage tax refunded by the Municipality. 2. Whether the Court has the power to allow interest in this case. 3. Whether the plaintiff can claim interest under the law or in tort. Analysis: 1. The case involved a revision application against an order of the Small Cause Court Judge of Ahmedabad regarding a drainage tax refund claim. The applicant sought interest on the refunded amount from the Municipality. The applicant had initially appealed against the tax demand, which was dismissed by the Magistrate and the Sessions Court. The High Court later held the drainage tax levy as illegal and directed a refund. The applicant then claimed interest on the refunded amount from the Municipality in the Small Causes Court. 2. The Court examined the provisions of the Interest Act and the English Interest Act of 1839. It was noted that the Interest Act allows interest on a sum certain payable at a certain time by virtue of a written instrument. However, since no written instrument existed in this case for the payment of interest, the Court concluded that it lacked the authority to allow interest. The Court also considered the principle of justice, equity, and good conscience, but referenced a Privy Council decision stating that interest cannot be allowed as damages unless there is an agreement or a trade usage mandating it. 3. The defendant Municipality argued that the plaintiff's claim for interest could be viewed as a tort claim, but the Court rejected this argument. It was determined that even if the plaintiff could claim interest under the law, the delay in filing the suit exceeded the statutory limitation period. Ultimately, the Court held that the plaintiff was not entitled to recover interest in this case based on legal precedents. The Judge set aside the lower court's order, ruling that it was not in accordance with the law, and awarded costs to the applicant.
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