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2003 (8) TMI 364 - SC - Companies LawWhether the future interest was to be at the rate of 5% above the prevailing bank rate subject to a minimum of 13½% per annum or whether the future interest was to be at such other rate of interest as may be decided by the Corporation for similar advances from time to time? Whether the half yearly rests on product basis was to be only applied if the rate of interest was to be decided by the Corporation and not if the rate of interests was to be 5% above the prevailing bank rate subject to a minimum of 13½%? Held that:- Appeal allowed. Clauses 2 and 7 of the compromise deed make it very clear that the Appellants were entitled to charge interest on half yearly basis. We see no substance in the submission that the "half yearly rests" was to apply only if the rate of interest was to be decided by the Appellants. These words clearly applied to both the options. In the classificatory portion the words "on half yearly basis" have not been mentioned because the portion is only clarifying how interest was to be calculated. This portion, thus, does not detract from the fact that the decree is in terms of the compromise deed. Merely because some other minor changes, which appeared to be inadvertent changes, have crept in, do not also detract from the fact that the decree is in terms of the compromise deed. We also do not find any uncertainty in the decree.
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