9911796707
TMI Blog1999 (8) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... erest at the commercial rates as then prevalent. The facts of the case are that the appellant-company had a bank account with the respondent-bank wherein in the month of June, 1983 a cheque for Rs. One lakh was deposited by the appellant for collection and the proceeds thereof to be credited to its account. The appellant alleged that though the proceeds of the cheque were collected on June 17, 1983 yet they were not deposited in its account for over a period of seven years. The appellant filed a complaint before the State Consumer Disputes Redressal Commission (hereinafter called the State Commission ) constituted under the Consumer Protection Act, 1986 (hereinafter called 'The Act') detailing therein its entitlement to the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the members of the National Commission, the negligence of the respondent stood proved which entitled the appellant to the payment of the amount claimed before the State Commission. After hearing the learned counsel for the parties and perusing the record, we have noticed that the State Commission as well as the National Commission have concurrently found that the amount realised by the collection of cheque in question could not be deposited apparently on the basis of an understanding between the parties which authorised the bank to keep the same as margin money for the guarantee furnished by the Bank on behalf of the complainant company to the Chief Controller of Exports and Imports. It has been found that the bank was not wrong in havi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. We, however, find that the general provision of the Section 34 being based upon justice, equity and good conscious would authorise the Redressal Forums and Commissions to also grant interest appropriately under the circumstance of each case. Interest may also be awarded in lieu of compensation or damages in appropriate cases. The interest can also be awarded on equitable grounds as was held by this Court in Satinder Singh and Ors. Vs. Amrao Singh Ors. (1961 (3) SCR 676). Referring to the province of the Interest Act of 1839, in relation to the compulsory acquisition of land where no specific provision is made for grant for awarding the interest, the Court held: In this connection we may incidentally refer to Interest Act, 1839 (XXXII ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of compensation to them. To the same effect is the judgment in Laxmichand Vs. Indore Improvement Trust, Indore and Ors. (AIR 1975 SC 1303). The State Commission as well as the National Commission were, therefore, justified in awarding the interest to the appellant but in the circumstances of the case we feel that grant of interest at the rate of 12% was inadequate as admittedly the appellant was deprived of the user of a sum of Rs. One lakh for over a period of seven years. During the aforesaid period, the appellant had to suffer the winding up proceedings under the Companies Act, allegedly on the ground of financial crunch. We are of the opinion that awarding interest at the rate of 15 per cent per annum would have served the en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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