TMI Blog2001 (5) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... and also agrees to pay interest at the rate of 20 per cent, from August 2, 1995, till the date of the winding up petition". The final direction was as follows : "In that view of the matter, considering the facts and circumstances of this case, I direct that interest should be paid at the rate of 22 per cent, until the date of filing of the winding up petition on the admitted principal amount of Rs. 4 crores and thereafter at the rate of 12 per cent. The company is allowed to pay the principal amount along with interest which has accrued due by six monthly instalments, the first of such instalments to be paid on November 4, 1996, and all subsequent instalments will be paid on the 15th of each and every succeeding month. In the event of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instalments within the due dates as specified above, the company petition being No. 248 of 1996 shall stand admitted and advertisements be issued once in two local dailies being the Statesman and Aajkall and publication in the Calcutta Gazette stands dispensed with." By an order dated January 10, 2001, though certain directions were passed regarding payment to creditors but for those creditors not receiving payment in terms thereof, were kept outside its scope. The present applicant did not receive payment in terms of the said order and thus remaining outside the same, made this application relying on the earlier order of the appellate court. Mr. A.K. Panja, learned counsel for the petitioner contended that the appeal court act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of interest on the aforesaid amount even in the case of default as the order of the appeal court categorically provided the only consequences in the case of default as admission of the company petition and liberty to advertise. Learned counsel relied on the judgment in the case of Thirugnanavalli Ammal v. P. Venugopala Pillai, AIR 1940 Mad 29 and Dwarka Das v. State of Madhya Pradesh, AIR 1999 SC 1031. The judgment in the case of Devendra Kumar Jain v. Polar Forgings and Tools Ltd. [1995] 84 Comp. Cas. 766 (Delhi) decides the power of the company court in appropriate facts. But the same does not help in deciding the present question relating to interpretation of the judgment by the Division Bench. Here the position has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany petition and liberty to advertise. Therefore, in my opinion, the direction of the appeal court was clearly for payment of the quantified amount inclusive of all interest. There is no scope for finding that the appeal court did not direct payment of interest or that it provided for liability to pay interest in the case of any default. In the absence of any specific observation by the appeal court to the contrary, it is the appellate order which is to be effective and in the present facts the trial court's order merged in the appellate order. Law decided in the case of Kunhayammed v. State of Kerala [2000] 245 ITR 360 ; [2000] 6 SCC 359 also supports such view. As the appeal court has taken into consideration the aspect of payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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