Court-ordered instalment default can trigger interest on the entire outstanding dues when the first payment is late.

Where dues are permitted to be paid in instalments under a court order, failure to pay the first instalment on time constitutes default at the threshold. On that basis, interest may be recovered on the entire outstanding amount in accordance with the order, and the debtor must either comply strictly with the stipulated terms or seek extension from the court. A later delay in paying the final instalment reinforces the applicability of interest on the unpaid balance. The challenge to the departmental recovery of interest therefore failed, and the recovery was sustained.

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Issues: Whether, after delay in making the initial instalment and a further delay in paying the final instalment under the Supreme Court's directions, interest was recoverable on the entire outstanding amount or only on the delayed instalment.

Analysis: The obligation to pay arose under the Supreme Court's directions granting time to discharge a portion of the past dues in instalments. The initial 20% payment was made after the stipulated date, which constituted a default at the threshold. Once the first payment itself was delayed, the department was entitled to insist on interest in accordance with the Supreme Court's order, and the appellant was expected to comply strictly with the terms of that order or seek extension from the Supreme Court. The later delay in the final instalment reinforced the applicability of interest on the outstanding dues.

Conclusion: Interest on the entire outstanding amount was rightly recovered, and the appellant's challenge failed.

Final Conclusion: The appeal was dismissed and the departmental recovery of interest was sustained.

Ratio Decidendi: Where payment of dues is permitted in instalments by a court order and the first instalment is not paid within time, interest may be levied on the entire outstanding amount in accordance with that order.

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