query regarding stay period

[Asked by Guest]

this is a very general query. if a tribunal grants a stay on a person from non-payment of any interest etc. and a higher authority (eg. High Court) subsequently revokes the stay, then is there any liability to make any payment during the stay period or is the party exempted from it? mention of one or two case laws would be helpful too. thanks.

[YAGAY and SUN]

Dear Amita,

It is settled legal position that Judgments pronounced by the High Courts would be followed by the Lower Authorities including Tribunals.

You would have two options either pay it or seek a stay from the Apex Court.

Regards

Team YAGAY & SUN

Thank you for your reply.

If you could clarify it for me further - if the court revokes the stay order does that mean that the party will have to pay the amount for the stay period that was granted too?

[YAGAY and SUN]

Dear Amita,

Interest would be payable from the date of pronouncement of judgment by the Hon'ble High Court.

Regards,

Team YAGAY & SUN

AI Summary

Liability during stay: revocation by a higher forum reinstates obligations and interest accrues from the higher forum's ruling.
If a higher court revokes a tribunal stay, the higher court's ruling is binding on lower authorities and liabilities governed by that ruling revive; interest on the disputed amounts is chargeable from the date of the higher court's pronouncement, leaving the taxpayer to either make interim payments or seek further stay relief from a superior forum.