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2008 (2) TMI 941 - SC - Indian Laws

Issues involved:
The issues involved in this legal judgment include the power of the executing court to grant interest even if not mentioned in the decree, the correctness of the Trial Court's order regarding interest on arrears, and the opportunity of being heard before passing the order.

Power of Executing Court to Grant Interest:
The legal judgment revolves around the question of whether the executing court has the authority to award interest even if it is not specified in the decree. The Trial Court relied on a decision to award 12% interest from the date of decree till realization, which was challenged in the High Court and subsequently in the Supreme Court. The Supreme Court cited a previous case to establish that an executing court cannot exceed its jurisdiction by granting interest not included in the decree. The Court emphasized that the executing court's role is limited to executing the order as per the procedure laid down.

Correctness of Trial Court's Order:
The Trial Court's decision to award interest on arrears was based on a High Court judgment that allowed interest even if not mentioned in the decree. However, the Supreme Court found that the High Court's interpretation was incorrect as it exceeded the legal boundaries. The Supreme Court clarified that the Trial Court's reliance on the High Court's judgment was misplaced, leading to an incorrect order. The Supreme Court set aside the Trial Court's order and the High Court's confirmation of the same.

Opportunity of Being Heard:
The applicant raised concerns about not being given a reasonable opportunity to present arguments before the order was passed. The applicant contended that there were other arguable points regarding interest on arrears that were not considered. Despite the applicant's absence during the previous hearing due to illness, the Supreme Court heard the applicant in detail before maintaining the previous order. The Supreme Court ultimately dismissed the Interlocutory Application filed by the applicant-respondent.

 

 

 

 

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