SC held that interest must be paid on refund of stamp duty for...

SC held that interest must be paid on refund of stamp duty for lost e-stamp paper, applying the principle that a person deprived of legitimate use of money deserves compensation. The court rejected a narrow statutory interpretation, ruling that interest represents normal capital accretion rather than penalty. Following restitution doctrine and precedents from Secretary, Irrigation Department v. G.C. Roy, the court determined that compensation for deprivation of money use is justified, whether termed as interest, compensation, or damages. The appellant was awarded interest on Rs. 28,10,000, considering the extended retention period and necessity of court intervention. Interest rate was set at 8% from deposit date until actual refund.

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