1999 (4) TMI 569

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....e amount of interest on allotment money from 26-3-1995 till 30-4-1995. 2. It is, inter alia, alleged that respondent No. 3 came out with a public issue of 1,60,000 fully convertible debentures and rights issue of 1,74,02,424 fully convertible debentures of Rs. 65 each in November/December, 1994. As per the terms of the prospectus and letters of offer a sum of Rs. 20 per debenture was payable on application while further sum of Rs. 45 per debenture was payable on allotment. Pursuant to the decision of the board of directors, respondent No. 3 called upon the allottees to make the payment of call money of Rs. 45 per debenture by 25-3-1995. It is further stated that because of impending financial year ending on 31-3-1995, around 90 per cent ....

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...., respondent No. 3 filed a special leave petition before the Supreme Court, which came up for hearing on 15-2-1999. During the course of the hearing, it was observed by the Court that the question of payment of interest over interest had not been brought to the notice of this Court. Accordingly, the learned counsel appearing for respondent No. 3 prayed for the withdrawal of the special leave petition and to make an appropriate application in the matter before this Court. It is further stated that grant of interest over interest is prohibited under section 3(3)(c) of the Interest Act, 1978, and, therefore, part of the said order dated 25-9-1998 granting interest over interest at the rate of 14 per cent till 31-10-1998, deserves to be varied.....

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....r or award is given for a sum which, apart from interest on damages, exceeds four thousand rupees, and (b)the sum represents or includes damages in respect of personal injuries to the plaintiff or any other person or in respect of a person's death, then, the power conferred by that sub-section shall be exercised so as to include in that sum interest on those damages or on such part of them as the court considers appropriate for the whole or part of the period from the date mentioned in the notice to the date of institution of the proceedings, unless the court is satisfied that there are special reasons why no interest should be given in respect of those damages. (3) Nothing in this section,- (a )shall apply in relation to- (i....