Wrongful retention after notice can justify interest from the date of suit in cases of unlawfully collected tax.

Interest on money unlawfully collected as sales tax may be awarded from the date of suit where the amount is wrongfully retained after notice demanding repayment. The Court treated the award of post-suit interest as a matter of judicial discretion and upheld it because pre-suit interest had been refused, yet the retention continued despite demand. The principle applied was that wrongful retention after notice can justify interest from the institution of proceedings.

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Issues: Whether interest on the principal amount illegally collected as sales tax could be awarded from the date of the suit.

Analysis: The award of interest from the date of suit was a matter of judicial discretion. The claim for pre-suit interest had been disallowed, but after the institution of the suit the amount continued to be wrongfully retained despite notice demanding repayment. In those circumstances, the grant of interest from the date of suit was justified.

Conclusion: The award of interest from the date of suit was upheld and the contention against it failed.

Ratio Decidendi: Where money unlawfully collected is wrongfully retained even after notice, the court may properly award interest from the date of suit in the exercise of discretion.

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