CENTRAL BANK OF INDIA versus STATE OF GUJARAT & ORS.

CENTRAL BANK OF INDIA versus STATE OF GUJARAT & ORS.

In the absence of an order of stay, the decree was executable. The decreetal amount, once deposited in the executing court, should not be refunded to the judgment-debtor; instead, it may be paid to the decree-holder subject to conditions to protect recovery in case of reversal.

Parties
Appellant/decree Holder: Central Bank of India; Respondent/judgment Debtor: State of Gujarat
Jurisdiction
India
Judgment Date
11 September 1987
Procedural Posture
Civil Appeal / Appeal Against High Court Order of Refund
Outcome
Appeal allowed; High Court order of refund reversed.
Legal Topics
Stay of Execution, Refund of Deposited Amount, Appeal Process
Civil Procedure Stay of Execution Refund of Deposited Amount Appeal Process

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Parties

Central Bank of India

Appellant/decree Holder

State of Gujarat

Respondent/judgment Debtor

Procedural Posture

Civil Appeal / Appeal Against High Court Order of Refund

Legal Issues

  1. 1 Whether the appellate court can order refund of the decreetal amount deposited in the executing court to the judgment-debtor when stay of execution was not in operation

Ratio Decidendi

In the absence of an order of stay, the decree was executable. The decreetal amount, once deposited in the executing court, should not be refunded to the judgment-debtor; instead, it may be paid to the decree-holder subject to conditions to protect recovery in case of reversal.

Court Disposition

Appeal allowed; High Court order of refund reversed.

Orders

  • Amount to be paid to the decree-holder (appellant) subject to condition that if the decree is reversed, the appellant-bank must redeposit the amount in the executing court within two weeks along with 18% interest from the date of withdrawal till re-depositing.
  • No order for costs.