Writ deposit interest turns on the interim order's terms; statutory refund rates do not apply automatically.

Interest on amounts deposited pursuant to a writ court's interim order is governed primarily by the terms of that order, not mechanically by the statutory refund provision. The Court held that section 14-C of the Orissa Sales Tax Act did not automatically control the full claim for interest on the two deposits. For the earlier deposit of Rs. 50 lakhs, interest was payable at 12 per cent in the circumstances. For the later deposit of Rs. 25 lakhs, no additional interest was awarded, and no recovery was permitted from interest already paid. The existing interest payment was treated as sufficient on the facts.

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Issues: (i) whether interest on amounts deposited pursuant to the High Court's interim orders was governed by section 14-C of the Orissa Sales Tax Act, 1947; (ii) what interest, if any, was payable on the amounts of Rs. 50 lakhs and Rs. 25 lakhs deposited by the assessee.

Issue (i): Whether interest on amounts deposited pursuant to the High Court's interim orders was governed by section 14-C of the Orissa Sales Tax Act, 1947.

Analysis: The deposits were made pursuant to writ directions and the High Court had not directed that the statutory refund mechanism under section 14-C would control the entire question of interest. Where a court orders deposit in writ jurisdiction, the conditions attached to that order govern the consequence of refund to the extent they are expressly stated. For the balance, in the absence of a specific stipulation, statutory principles may be relevant, but the provision cannot be applied mechanically without regard to the terms of the judicial order.

Conclusion: Section 14-C was not treated as mechanically governing the whole claim for interest on both deposits.

Issue (ii): What interest, if any, was payable on the amounts of Rs. 50 lakhs and Rs. 25 lakhs deposited by the assessee.

Analysis: For the first deposit of Rs. 50 lakhs, the Court held that interest was payable, but at 12 per cent in the circumstances, rather than at the higher rates claimed. For the later deposit of Rs. 25 lakhs, there was no express stipulation in the High Court's order as to interest, and on the peculiar facts the Court found that the amount already paid as interest sufficiently covered the matter. The Court therefore declined to grant any additional interest and also declined to permit recovery of any part of the interest already paid.

Conclusion: No further interest was payable and no recovery could be made from the interest already paid.

Final Conclusion: The competing appeals were disposed of by preserving the interest already paid and denying any additional fiscal adjustment between the parties.

Ratio Decidendi: Where money is deposited pursuant to a writ court's interim order, interest on refund is governed primarily by the terms of that order, and in the absence of an express stipulation the court may award only such reasonable interest as the circumstances justify rather than automatically applying the statutory refund rate.

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