Statutory refund delay triggers interest where authorities must verify and release the balance within a reasonable time.

Statutory refund claims must be verified and paid within a reasonable time, and the revenue cannot delay payment at its own pace. Where refund remains unpaid beyond six months from the application date, section 43 of the Bihar Finance Act contemplates interest on the delayed amount. The authorities were therefore required to complete verification expeditiously and release any balance found due, with interest payable on delay. The principle applied is that partial refund does not justify indefinite withholding of the remaining admitted or verified amount.

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Issues: Whether the petitioner was entitled to expeditious verification and refund of the balance amount claimed, with interest on delayed refund under section 43 of the Bihar Finance Act.

Analysis: The refund claim related to the assessment year 1998-99. The respondents had already refunded part of the amount and stated that the remaining claim was under further verification with the Treasury Officer. The Court held that the revenue authorities could not postpone refund at their own pace, since refund is required within a reasonable time and the statutory scheme contemplates payment of interest if the refund is not completed within six months from the date of application. The respondents were therefore directed to complete the verification and pay whatever further amount was found due expeditiously.

Conclusion: The petitioner succeeded on the refund claim, and the respondents were required to pay the balance, if any, with interest payable under section 43 of the Bihar Finance Act.

Ratio Decidendi: A statutory refund must be processed and paid within a reasonable time, and where the authority fails to do so within the prescribed period, interest on the delayed refund becomes payable.

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