Restitution on court deposits does not automatically include interest when conditional withdrawal was never available.
Restitution under Section 144 CPC aims to restore parties to the position they would have occupied but for an erroneous decree, and the court may grant consequential relief such as interest where justice requires. However, where money is deposited in court under a conditional stay order and the decree-holder cannot withdraw it because the security condition is not satisfied, interest is not automatically payable for the entire period of deposit. Entitlement depends on the actual circumstances, including whether the decree-holder derived any real benefit from the deposit and whether the barrier to withdrawal was removed. On these facts, interest was rejected and the award of interest was set aside.
Issues: Whether interest could be awarded as part of restitution on money deposited in court pursuant to a conditional stay order, when the decree-holder did not withdraw the deposit because the condition of furnishing security was not complied with.
Analysis: Restitution under Section 144 of the Code of Civil Procedure, 1908 is intended to restore the parties to the position they would have occupied but for the erroneous decree, and the Court may direct interest, damages or other consequential relief where justice so requires. However, where the decree amount is deposited in court subject to a condition restricting withdrawal, and the decree-holder neither obtains nor uses the money because the condition is not fulfilled, there is no invariable rule that interest must be paid for the entire period of deposit. The entitlement depends on the circumstances of the case, the existence of any real benefit to the decree-holder, and whether the obstacle to withdrawal has been removed.
Conclusion: Interest was not payable on the deposited amount on the facts of the case, and the claim for interest was rejected in favour of the appellant.
Final Conclusion: Restitution was confined to the relief actually warranted by the circumstances, and the award of interest was set aside.
Ratio Decidendi: Interest as part of restitution is not automatic on a court deposit made under a conditional stay order; it becomes payable only when the circumstances show a real benefit to the decree-holder or when the obstacle to withdrawal has been removed, so that justice between the parties requires such payment.
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