TaxTMI 
TaxTMI 
2004 (10) TMI 329
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....ment dated 7-7-2004 and for further directions. I.A. No. 5 has been filed by the respondent Citibank N.A. ('the Citibank') in Civil Appeal No. 9063 of 1996 reporting compliance and recording satisfaction of the decree passed in the appeal. 2. Before adverting to the prayers made in the I.As. it is necessary to refer to few facts leading to the filing of the I.As. 3. Suit No. 24 of 1994 was filed by the SCB against Citibank seeking an order and decree against the Citibank to pay to SCB a sum of Rs. 55,73,92,241.57 p. with further interest on the principal sum of Rs. 48,27,91,095.89 p. @ 20 p.a. from the date of filing of the suit till repayment. Citibank filed back to back suit being Suit No. 1 of 1995 against Canbank Financial Services Lt....
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....9% IFRC Bonds of the face value of Rs. 50 crores within a period of 16 weeks along with the coupon interest @ 9% p.a. from 15-7-1991 till the bonds were delivered. Learned Judge awarded lower rate of interest by observing thus :- "....The Court realises that in so granting interest the Court is making a difference from Suit No. 24 of 1994 and other suits where it has granted interest at 20%. But all those cases have been the cases where the Plaintiffs therein have had a strong case to which the Defendants therein had virtually no defence..." 6. Citibank being aggrieved against the judgment and decree granted against it in Civil Suit No. 24 of 1994 filed Civil Appeal No. 7426 of 1996 and CANFINA being aggrieved against the decree passed in....
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....provided it is paid on or before 1-9-2004 and in default to pay the interest @ 12% p.a. from the date of payment till it is repaid by the Citibank. Though the appellant had prayed for higher rate of interest but we deem it appropriate to grant the same rate of interest which had been granted by the Special Court, while decreeing the Suit No. 1 of 1995. We decline to grant costs in the appeal as the Special Court had not granted any costs while decreeing the suit of Citibank. The parties in this suit shall bear their own costs throughout." 8. I.A. No. 5 in Civil Appeal No. 7426 of 1996 has been filed seeking clarification and direction with the averment that this Court by ordering restitution has directed the SCB to pay interest @ 12% per a....
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....on was much higher) as the rate of interest had come down in the recent years. Award of interest @ 12 per cent was deemed to be just and equitable. Though we were of the opinion that keeping in view the lending rates of the banks on commercial transaction the rate of interest should be awarded at 12 per cent per annum in Civil Appeal No. 9063 of 1996 as well but the same could not have been done as the Special Court had awarded interest in favour of Citibank @ 9 per cent per annum only. The Citibank could not be asked to pay interest at a rate higher than what was granted to it in the suit. Since the Citibank had been awarded interest @ 9 per cent per annum we deemed it appropriate and upheld the award of interest at that rate of interest a....