Vatech Co Ltd v. Unicorn Denmart Ltd

$~52 *

IN THE HIGH COURT OF DELHI AT NEW DELHI

+ EX.P. 46/2023, EX.APPL.(OS) 136/2024, EX.APPL.(OS) 242/2024 VATECH CO LTD ..... Decree Holder Through:

Ms. Meenakshi Ogra, Mr. Tarun Khurana, Mr. Samrat S. Kang, Ms.

Chhavi Paney, Mr. Rishi Vohra, Mr.

Devanshu Dedi, Advs.

versus UNICORN DENMART LTD ..... Judgement Debtor Through:

Mr. Gunjan Kumar, Ms. Geetika Matta, Advs.

CORAM:

HON'BLE MR. JUSTICE JASMEET SINGH

O R D E R

% 29.02.2024 1.

This is a petition seeking execution of the judgment and decree dated 04.08.2022 passed in CS(COMM) No. 857/2017.

2.

The execution petition seeks recovery of principal amount of Rs. 2,77,26,742/- with pre-suit interest at the rate of 9% per annum and post suit interest at the rate of 7%.

3.

The parties have arrived at a settlement and the decree-holder has handed over a chart pursuant to which payments are to be made. The same is acceptable to the learned counsel for the judgment debtor. 4.

The payment schedule is reproduced below:- The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Principal Amount 2,77,26,742.00 Total Interest as 1,78,69,754.52 on 27.02.2024 Litigation 26,40,131.00 4,80,74,888.10 SCHEDULE OF PAYMENT OPENING O/S UTILIZATION CLOSING TOTAL Balance Interest Closing Principal Opening Outstandin g Interest Opening Interestfrom Towards Principal Towards Towards Litigation Balance Litigat ion Charg es Total Date Payment Opening Outstanding Total lastpayment Interest Outstanding Charges Litigatlon Principal utstanding Outstanding on outstanding Charges Amount Outstanding Prlnclpal 27.02.2024 65,00,000 2,77,26,742 1,78,69,755 26,40,131 4,82,36,628 65,00,000 26,40,131 1,13,59,755 2,77,26,742 4,17,36,628 27.03.2024 65,00,000 2,77,26,742 1,13,69,755 26,40,131 1,61,739 4,18,98,367 65,00,000 26,40,131 50,31,494 2,77,26,742 3,53,98,367 27.04.

2024 65,00,000 2,77,26,742 50,31,494 26,40,131 1,61,739 3,55,60,106 51,93,233 13,06,767 13,33,364 2,77,26,742 2,90,60,106 27.05.2024 65,00,000 2,77,26,742 13,33,364 1,61,739 2,92,21,846 50,04,896 1,61,739 13,33,364 2,27,21,846 2,27,21,846 27.06.2024 65,00,000 2,27,21,846 1,32,544 2,28,54,390 63,67,456 1,32,544 1,63,54,390 1,63,54,390 27.07.2024 65,00,000 1,63,54,390 95,401 1,64,49,790 64,04,599 95,401 99,49,790 99,49,790 27.08:2024 65,00,000 99,49,790 58,040 1,00,07,831 64,41,960 58,040 35,07,831 35,07,831 27.09.2024 35,28,293 35,07,831 20,462 35,28,293 35,07,831 20,462 Total 4,90,28,293 5.

The judgment debtor shall be bound to the above-reproduced payment schedule.

6.

However, the first instalment of 27.02.2024 shall be payable on or before 10.03.2024.

7.

The instalment for the month of March will be paid on 30.03.2024 and thereafter the schedule will be followed. 8.

In addition, my attention has been drawn to a judgment of this court titled "Voith Hydro Ltda & Ors. Vs. NTPC Limited" in O.M.P. (ENF.) (COMM.) 64/2018, wherein this Court has held as under: "33. In Islamic Investment Company v. Union of India and Anr.: (supra), the Bombay High Court following the decision in All India Reporter Ltd. v. Ramchandra D. Datar (supra) rejected the contention that the Judgment Debtor (in that case, the Food The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Corporation of India) must be allowed to deduct TDS on the interest payable to a non- resident. The Court observed that: "when such amounts becomes part of a judgment-debt, they lose their original character and assume the character of a judgment debt. Once such an amount assumes the character of judgment debt, the decree passed by the civil court must be executed subject only to the deductions and adjustments permissible under the Code of Civil Procedure."

34. The Court further observed that there was no provision under the Income Tax Act or under the Code of Civil Procedure, 1908 where an amount of interest payable under a decree would be subject to TDS."

9.

For the said reasons, it is directed that the judgment debtor shall not deduct any TDS on the judgment debt.

10.

However, the judgment debtor shall deduct TDS on the amounts permissible under the CPC.

11.

The execution petition is disposed of.

JASMEET SINGH, J FEBRUARY 29, 2024/DM Click here to check corrigendum, if any The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.