Supreme Court Allows Union to Encash Rs. 2,956 Crores with Commitment to Refund if Appeals Succeed; Expedites Appeal Process.

The SC modified the HC order, allowing the Union to encash Rs. 2,956 Crores, comprising cash and FDRs, with a commitment to refund the amount plus interest within four weeks if the petitioner's appeals succeed. The requirement for penalty security was waived. The SC urged the HC to expedite the appeal's resolution within six weeks. The SLP was disposed of, and all pending applications were resolved.

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Issues involved:
The issues involved in the judgment are modification of the High Court order regarding encashment of a specific amount, refund of the amount with interest if petitioner's appeals are allowed, dispensation of security for penalty, and a request to the High Court for expeditious disposal of the appeal.

Modification of High Court Order:
The Supreme Court declined to interfere with the High Court's order but made modifications regarding the encashment of Rs. 2,956 Crores, consisting of cash and Fixed Deposit Receipts (FDRs). The Union is permitted to encash this amount, with an undertaking for refund within four weeks along with accrued interest if the petitioner's appeals are successful. The necessity for security related to the penalty was waived off.

Expedited Disposal Request:
Due to the significant nature of the matter, the Supreme Court urged the High Court to promptly hear and dispose of the appeal within six weeks from the current date. The Special Leave Petition was disposed of, and any pending applications were also resolved.

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