Court orders Respondents to refund Rs. 9,50,000 + interest to Petitioners. Refund due in 12 weeks.

The Court ordered the Respondents to refund the amount of Rs. 9,50,000 along with interest at 6% per annum from the date of payment/deposit by the Petitioners. The refund process was directed to be completed within 12 weeks from the judgment date, resolving the dispute in favor of the Petitioners seeking the refund and interest payment.

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Issues:
1. Failure to refund the amount along with interest as per order dated 8th June, 1999.
2. Petition under Article 226 seeking direction for refund.
3. Disagreement on payment of interest by the Respondents.
4. Precedents cited by both parties regarding refund with interest.
5. Court's decision on refund and interest payment.

Analysis:
1. The petition sought a direction for the refund of Rs. 9,50,000 along with interest as per the order dated 8th June, 1999. The Petitioners alleged that despite repeated requests, the Respondents failed to refund the amount. The total amount paid was Rs. 9,50,000, with Rs. 6,75,000 paid in 1987 and Rs. 2,75,000 paid in 1993.

2. The Petitioners, represented by Mr. Chirag Shetty, requested the return of the total amount along with interest at 10% per annum from the date of deposit with the Respondents. Citing legal precedents such as Abu Moosa and Co. Vs. Union of India, M/s. R.K. Jewellers and Anr. Vs. Union of India & Ors., and Prabodh G. Mehta Vs. Union of India, the Petitioners argued for the interest payment.

3. On the other hand, Mr. A.R. Singh, representing the Respondents, stated that while the principal amount would be refunded within 12 weeks, they opposed paying interest as they had not earned any income on the amount. The Respondents' position was to process the refund without interest.

4. The Court referred to previous judgments like Abu Moosa and Prabodh Mehta, where interest was directed to be paid on refunded amounts to compensate the petitioners for the deprivation of their funds. Despite the Respondents' argument of not earning any income on the amount, the Court ordered a refund of Rs. 9,50,000 along with interest at 6% per annum from the date of payment/deposit by the Petitioners.

5. The Court directed the Respondents to expedite the refund process, preferably within 12 weeks from the judgment date, and specified the interest rate at 6% per annum. The Writ Petition was disposed of based on the above terms, resolving the issue of refund and interest payment in favor of the Petitioners.

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