Supreme Court lowers interest rate for petitioner on disputed duty amount during stay period.

The Supreme Court reduced the interest rate imposed on the petitioner for the disputed duty amount during the stay period from 17.5% to 12% per annum. The interest was ordered to be calculated from 1st January, 1985, until payment, despite the uncertainty of the duty's legality before the Court's decision in September 1984. The Special Leave Petition was disposed of with the modified interest rate and calculation period.

---

---

Issues involved:
The petitioner seeks special leave to appeal regarding the order made by the High Court of Delhi in C.R. No. 2032/1992 and connected cases, specifically challenging the directive to pay interest on the disputed duty amount during the period of stay granted by the High Court.

Summary:

Issue 1: Interest on disputed duty during stay period
The High Court directed the petitioner to pay interest on the disputed duty amount for the period of stay granted during the proceedings. The petitioner did not contest the dismissal of the writ petition but challenged the imposition of interest, arguing that the rate of 17.5% was excessive and unjustified. The petitioner claimed that the financial burden of paying interest would be detrimental to their business. The Supreme Court, considering the circumstances, reduced the interest rate to 12% per annum and ordered it to be calculated from 1st January, 1985, the date from which the interest would accrue till payment. The Court found the interest imposition justified from the said date till payment, despite the uncertainty of the duty's legality prior to the Court's decision in September 1984.

Conclusion:
The Special Leave Petition was disposed of accordingly, with the interest rate reduced to 12% per annum and calculated from 1st January, 1985 till payment.

---