Full Judgment Text
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 3485 OF 2011
[Arising out of SLP(C) No.32014 of 2010]
State of Tamil Nadu & anr. .......Appellants
Versus
M/s. Saketh India Ltd. .....Respondent
O R D E R
Leave granted.
2. A quarrying lease was granted for ten years
in favour of the respondent. Subsequently, the respondent
submitted a representation to the appellant to refund the
`
lease amount of 44.55 lakhs on the ground that the lease
area was forest area and the forest department was in the
process of declaring it as reserved forest. As the
appellant did not refund the amount, the respondent filed a
`
writ petition seeking refund of 44.55 lakhs with interest
at 24% per annum. A learned single Judge, by order dated
13.11.2006, allowed the writ petition and directed refund
of the lease amount. He did not, however, award any
interest. Feeling aggrieved, the respondent filed a writ
appeal. The appellate Bench granted interest at 18% per
annum on the analogy of the provision for interest under
Rule 36B. The said order is challenged by the State in
this appeal by special leave.
.......2.
- 2 -
3. It is stated by learned counsel for the
appellant that the lease amount has already been refunded
and the issue is only regarding interest. He submitted that
there is no contract or statutory provision governing
interest and in the circumstances, the directions for
payment of any interest, in particular, at the rate of 18%
per annum, was not warranted.
4. On the facts and circumstances, we are of the
view that interests of justice would be served if the rate
of interest is reduced from 18% per annum to 12% per annum.
We allow the appeal in part, accordingly.
......................J.
( R.V.
RAVEENDRAN )
New Delhi; ......................J.
April 21, 2011. ( A.K. PATNAIK )