2013 (1) TMI 1035 - HC - Indian Laws

Summary

Issues involved: Calculation of penal interest, liability of defaulted instalments, adjustment of deposited amount, reasonable time for payment.

In the judgment, the petitioner accepted the liability of all defaulted instalments along with 18% interest which are unpaid. The petitioner argued that penal interest can only be charged once for one period of default and cannot be capitalized, citing a judgment of the Apex Court. The petitioner calculated the amount due to be &8377; 15,28,94,136/- as of the present date, with a request for some reasonable time to pay the entire amount. On the other hand, the respondent's counsel disputed the calculation and stated that the 24% penal interest was not included in the defaulted installments. The respondent's counsel was granted four weeks to file a counter affidavit. The court directed the petitioner to deposit &8377; 3,00,00,000/- (Rs. Three Crore) in every quarter, starting from 31st March, 2013, with a review after eight weeks. No coercive action was to be taken against the petitioner as long as the directed payments were made, without prejudice to any rights regarding interest calculation.