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2010 (2) TMI 1203 - HC - Income TaxPayment of interest under the decree - Computation of the Interest amounts due - attached monies are not sufficient - liability of judgment debtor / DDA till which date the decree holder is entitled to interest? - till the date of attachment or till the date of release of the attached monies - HELD THAT:- Recently in N.K. Garg & Company Vs. Union of India[2009 (3) TMI 1101 - DELHI HIGH COURT] held that where the decree directs the payment of interest till the date of payment of the decretal amount, interest is payable till the date of payment and not till the date of attachment. In the present case, also no neglect can be attributed to the decree holder in release of the attached monies. The judgment debtor inspite of notice of the execution, kept on seeking adjournments and ultimately on 31st March, 2006, the court issued warrants of attachment of the monies lying in the bank account of the judgment debtor. Even thereafter opportunities were sought for making the payment directly. Ultimately on 2nd August, 2006 on the failure of the judgment debtor to make payment inspite of assurances, this court directed the attached monies to be forwarded by the bank in the name of the Registrar General of this Court. Thereafter on 18th December, 2006, the counsel for the judgment debtor for the first time contended that the amount payable under the decree was less than the amount attached and received in the Court. Accordingly, order for release of the amount admitted by the judgment debtor was made on 18th December, 2006 and pursuant thereto the monies released on 10th January, 2007. It is thus held that the decree holder would be entitled to interest under the decree till 10th January, 2007. TDS on the element of interest - 194C OR 194A - HELD THAT:- Recently in Indian Hume Pipe Co. Ltd. v. State of Rajasthan [2009 (10) TMI 530 - SUPREME COURT], it has been held that a person deprived of monies is entitled to be compensated by whatsoever name called, be it interest, compensation or damages. Thus, it cannot be said that payment of interest under the decree is akin to payment of interest to which Section 194 A applies. The reasoning given in Unique Enterprises [2006 (1) TMI 624 - DELHI HIGH COURT] that such payment is as part of a decree and the payment merges in the decree holds good qua Section 194 A also. No merit in either of the objections raised by the judgment debtor. The parties to appear before the Registrar General of this Court for computation of the amounts due in terms of the aforesaid and the additional amounts found due to the decree holder be released from the attached monies and if the attached monies are not sufficient, the judgment debtor / DDA to pay the said amount to the decree holder immediately on computation.
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