Court Orders Interest Disbursement to Depositors at 12/12.5% Rate

The court ordered the disbursement of interest to depositors at a rate of 12/12.5% per annum from the date of maturity till actual payment within twelve weeks. Penal interest at 18% per annum was denied as payments were made within the extended period. Emphasizing timely payment compliance, the court stressed the importance of releasing interest promptly. The insolvency application pending before the NCLT would be decided independently of the Supreme Court's judgment, ensuring an unbiased consideration based on its own merits.

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Issues: Disbursement of interest to depositors, Payment of penal interest, Timely payment compliance, Disposal of insolvency application

Disbursement of interest to depositors:
The appellant's counsel argued that all amounts were paid to depositors within the extended period, while the respondent's counsel contended that payments were made only till the date of maturity, not the actual payment date. The appellant agreed to pay interest at 12/12.5% p.a. from the date of maturity till actual payment if not already paid. The respondent sought penal interest at 18% per annum under Rule 17, but the court disagreed since the payments were made within the extended period. The court ordered that interest at the rate of 12/12.5% per annum from the date of maturity till actual payment must be released to depositors without any hindrance. The disbursement to depositors was directed to be completed within twelve weeks.

Payment of penal interest:
The respondent argued for penal interest at 18% per annum under Rule 17, but the court rejected this claim as the appellant had made payments within the extended period. The court emphasized the release of interest at the rate of 12/12.5% per annum from the date of maturity till actual payment to the depositors, overriding any other obstacles.

Timely payment compliance:
The appellant assured that all amounts were paid to depositors within the extended period, while the respondent highlighted that payments were made only till the date of maturity, not the actual payment date. Upon clarification, the appellant agreed to pay interest at 12/12.5% p.a. from the date of maturity till actual payment if not already paid. The court stressed the importance of releasing interest to depositors without delay, specifying the rate and period for such payments.

Disposal of insolvency application:
The judgment directed that the insolvency application pending before the NCLT would be decided on its own merits without any reference to the impugned judgment of the Supreme Court. This decision ensured a separate and unbiased consideration of the insolvency application based on its individual merits, detached from the issues addressed in the Supreme Court's ruling.

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