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of <h1>Court Rules in Favor of Claimant in Balance Kuri Dispute; Clarifies Interest and Set-off Rules</h1> <h3>Mattoor Chits & Finance (P.) Ltd. Versus Mrs. Mary Baby</h3> Mattoor Chits & Finance (P.) Ltd. Versus Mrs. Mary Baby - [1998] 94 COMP. CAS. 595 (KER.) Issues:Claim for balance kuri instalments with interest | Dispute over deposit amount and interest | Impact of winding up proceedings on liability | Claim for interest and set off | Calculation of balance amount and interestAnalysis:The judgment involves a dispute over a claim for balance kuri instalments with interest. The respondent contended that a deposit of Rs. 5,000 with interest at 14% per annum would discharge the entire amount due. However, the claimant argued that due to winding up proceedings, the respondent is only entitled to the balance principal amount available at the commencement of winding up. The court considered the impact of the winding up proceedings on the liability and the validity of the claim for interest and set off.The court analyzed the evidence presented, including the deposition of witnesses. The claimant's manager confirmed the deposit and interest agreement but disputed the respondent's claim of full discharge. The court highlighted the importance of the winding up order in determining the enforceability of the contract. It cited legal precedents to establish that no new rights can be created post winding up, affecting the completion of contracts. The court rejected the respondent's argument of a concluded contract absolving future liabilities due to the intervention of winding up proceedings.Regarding the calculation of the balance amount and interest, the court referred to previous judgments establishing that interest can only be claimed up to the date of presentation of the winding up petition. The court dismissed the respondent's argument of claiming set off against the company under liquidation, emphasizing that interest cannot be claimed post-commencement of winding up proceedings. The court calculated the final amount due to the claimant as Rs. 1,361 with interest at 12% per annum from a specified date.In conclusion, the court passed a decree in favor of the claimant for the calculated amount with interest. The judgment clarified the impact of winding up proceedings on contractual obligations and the limitation on claiming interest post-commencement of winding up. It resolved the dispute over the deposit amount and interest, emphasizing the importance of legal principles and precedents in determining liabilities in such cases.
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