Court Decree: Repayment of Rs. 10,83,55,294 ordered; Payment schedule set; Independence of transaction emphasized.

The court issued a decree for the repayment of Rs. 10,83,55,294 to the plaintiff as the respondent's admission of liability was clear. A payment schedule of 20 monthly installments was set without interest, with default in payment incurring 12% interest per annum. The court emphasized the independence of the transaction in question, disregarding the respondent's argument related to a separate project dispute. The case was decreed accordingly, with no order as to costs, and the department was instructed to promptly draft the decree for enforcement.

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Issues:
1. Admissibility of claim arising from an inter corporate deposit.
2. Dispute regarding repayment of the inter corporate deposit.
3. Existence of a contractual relationship between the parties.
4. Decree terms and payment schedule.

Analysis:
1. The judgment deals with an application for judgment upon admission concerning a claim arising from an inter corporate deposit of Rs. 5 crore created for a period of three months. It is undisputed that the entire amount, along with interest, has not been repaid to the plaintiff after the expiry period. The respondent acknowledged its liability through Tax Deduction at Source Certificates. A legal notice was issued, but it remained unanswered, leading to the court's intervention.

2. The respondent resisted the claim, citing a dispute between the plaintiff and another entity related to a hydroelectric project. The respondent argued that unless the arbitration proceeding related to the project is concluded and an award is passed, they are not liable to repay the inter corporate deposit. However, the court found this explanation difficult to accept, emphasizing that the respondent's confirmation of accounts clearly indicated its liability to the plaintiff. The court also noted the absence of privity of contract between the plaintiff and the other entity, emphasizing the independence of the transaction in question.

3. The court concluded that the respondent's admission of liability was unequivocal, and in the absence of a valid defense, a decree was issued for the repayment of Rs. 10,83,55,294. The court specified a payment schedule of 20 monthly equal installments, starting from a specified date, without interest. However, default in payment would attract interest at 12% per annum on the outstanding balance until full realization, with immediate payment becoming due in case of default.

4. As the decree virtually disposed of the suit, the court decreed the case accordingly, treating it on the day's list. The related applications were disposed of, with no order as to costs. The department was directed to draw up the decree promptly to facilitate the enforcement of the court's decision.

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