Deposit of Award Amount in Court Stops Further Interest
Order dated 13.2.2026 of the High Court of Bombay in Commercial Execution Petition No.38 of 2017 of Kiran Ranchoddas Ganatra Vs. Ganatra Hotels Pvt Ltd with connected matters
In 2018, the respondents deposited entire awarded amount with accrued interest computed till the date of each deposited amount, in the Court, with the full notice to the applicant.
The amount was withdrawn on furnishing the bank guarantee. Thus, the choice was given by the decree holder to withdraw the amount, to use the same and for that purpose, to furnish the bank guarantee.
As per sub-rule 1(a) read with sub-rule (4) of Rule 1 of Order XXI of CPC, on deposit of the amount by the judgment debtor in the Court, the further interest shall cease to run from the date of the notice.
However, in 2025, the execution applicants amended petition and claimed balance of Rs.4,69,97,463/- including bank guarantee charges.
it is reiterated that, once there is a deposit by the Award Debtor and the Award Holder is permitted to withdraw the same, even if such withdrawal is conditional and subject to the final decision in the matter, the court must consider that the award holder could access and benefit from such deposit. It is then the burden of the award holder to furnish security, as required by the court’s orders, to utilize the amount or to make an application for modification of the condition if it is unable to fulfill the same
