The decree-holder is entitled to appropriate the amount deposited by the judgment debtor first towards interest.

Citation

CDJ 2014 SC 270

V.Kala Bharati and others vs The oriental insurance company limited.br.chitoor

Head note

Civil Procedure Code - Order XXI Rule 1 – Money decree – Appropriation of amount towards principal, interest and costs - The decree passed by the trial Court or the appellate Court does not contain the mode of appropriation and in the absence of any such direction, the decree-holder is entitled to appropriate the amount deposited by the judgment debtor first towards interest, then cost and thereafter towards principal. if the amount deposited by the judgment debtor falls short of the decretal amount, the decree-holder is entitled to apply the rule of appropriation by appropriating the amount first towards interest, then towards costs and subsequently towards principal amount due under the decree; we are of the opinion that the appellants herein are entitled to the amount awarded by the Executing Court, as the amounts deposited by the judgment debtor fell short of the decretal amount. After such appropriation, the decree-holder is entitled to interest only to the extent of unpaid principal amount.

Cases Referred:
Industrial Credit and Development Syndicate (ICDS) Ltd. Vs. Smithaben H. Patel & Ors. 1999 (3) SCC 80,
Venkatadri Appa Rao Vs. Parthan Sarathy Appa Rao AIR 1922 PC 233,
Meghraj Vs. Bayabai 1969 (2) SCC 274
Gurpreet Singh Vs. Union of India 2006 (8) SCC 457. 12.
Rajasthan State Road Transport Corporation, Jaipur Vs. Poonam Pahwa, AIR 1997 SC 2951
Venkatadri Appa Rao Vs. Parthasarathi Appa Rao AIR 1922 PC 233
Rai Bahadur Sethnemichand Vs. Seth Rada Kishen AIR 1922 PC 26
Prem Nath Kapur & Anr. Vs. National Fertilizers Corporation, 1996 SCC (2) 71
Bharath Heavy Electricals Ltd. Vs. RS Avthar Sing & Co., 2013 (1) SCC 243

Comparative Citations:
2014 (2) KLJ 275, 2014 (2) KantLJ 631, 2014 (2) KLT 31 (SN) (C.No.45), 2014 (3) SCJ 725, 2014 AIR(SCW) 1961, 2014 AIR(SC) 1563, 2014 (3) CTC 35, 2014 (1) TNMAC 586, 2014 (5) SCC 577, 2014 (2) RCR(Civil) 573, 2014 (2) RAJ 557, 2014(4) JT 467, 2014 (4) Scale 449, 2014 (2) AIR(Kar) R 31, 2014 (2) CivCC 559, 2014 (4) ALD 54 (SC), 2014 (3) WBLR 731, 2014 (4) LW 603, 2014 (3) MWN(Civil) 752, 2014 (3) KCCR 308 (SN), 2014 (3) BCR 282,

(Full Bench)