Wrongful retention of refundable security deposit attracts interest until refund, with 15% upheld on the excess amount.

Where a dealer deposited excess security for issuance of Form-31 and that excess amount was admitted to be refundable, interest was payable on the wrongfully retained sum from the date of deposit until refund. The Court applied the principle that retention of money without justification attracts interest and upheld interest at 15% on the excess deposit. The Tribunal's direction to award interest was sustained on that basis.

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Issues: Whether interest was payable on the excess security amount deposited by the dealer for issuance of form-31, and if so, at what rate.

Analysis: The excess security amount was admitted to be refundable. The Court held that such excess deposit carried interest at 15% from the date of deposit until the date of refund. The view was supported by the Supreme Court's approval of the principle that wrongful retention of money warrants payment of interest.

Conclusion: Interest was rightly directed on the excess amount deposited, and the Tribunal's order was upheld.

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