Court Orders Refund of Transfer Fee, Grants Interest on Deposited Amount

The Court found the demand of transfer fee unsustainable under the resolution plan, directing the respondent to refund the amount. The challenge to the refund direction was dismissed based on the exemption clause in the plan. The Court ruled in favor of the writ petitioner, granting interest at 8% on the deposited amount from the date of deposit till refund. The judgment clarified the exemption of transfer charges under the plan, upheld the refund direction, and recognized the entitlement to interest on the refunded amount. The Court modified the order for payment of interest and directed refund within six weeks.

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Issues Involved:
The judgment involves issues related to the demand of transfer fee, exemption under a resolution plan, entitlement to recover transfer fee, interest on refunded amount, and applicability of legal principles regarding refund and interest.

Summary:

Issue 1: Demand of Transfer Fee
The appellants challenged the demand of transfer fee by the respondent, claiming it was exempted under the resolution plan sanctioned by the National Company Law Tribunal. The learned Single Judge found the demand unsustainable and directed the respondent to refund the amount received as transfer fee.

Issue 2: Challenge to Refund Direction
The respondent challenged the direction to refund the transfer fee, arguing for entitlement to recover it. However, the Court dismissed the challenge based on the clause in the resolution plan exempting the company and resolution applicant from transfer charges.

Issue 3: Interest on Refunded Amount
The writ petitioner sought interest on the amount deposited towards transfer fee under protest. The Court found that the respondent was not entitled to recover transfer charges, leading the writ petitioner to deposit the amount under protest. Citing legal precedents, the Court held that the writ petitioner was entitled to interest at the rate of 8% on the deposited amount from the date of deposit till the date of refund.

Conclusion:
The judgment clarified the exemption of transfer charges under the resolution plan and upheld the direction to refund the transfer fee. It also recognized the writ petitioner's entitlement to interest on the refunded amount, emphasizing the obligation to reimburse lawful monies with accrued interest. The Court modified the original order to include the payment of interest and directed the refund of the amount along with the interest within six weeks.

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