2006 (1) TMI 624

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....wal of the amount deposited in this Court pursuant to an award which has been made a rule of the Court by virtue of the order dated 27.01.2003. It is admitted by the parties that as on 19.1.2006 the amount of the decree along with interest at 10% w.e.f 20.8.1983 to 19.01.2006 comes to Rs. 2,73,185.40 which can be rounded of to Rs. 2,73,185/-. The learned counsel for the judgment debtor states that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t source and the decree holder can only get such payment after the deduction of the tax as calculated in terms of Section 194C of the Income Tax Act, 1961. The learned counsel for the decree holder, however, submitted that this is not a payment under the contract but a payment pursuant to a decree which, in turn, has been made pursuant to an award. According to him, therefore, it would not fall wi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt made pursuant to a contract, but one made pursuant to an award. Secondly, when the award directs that a certain amount shall be payable by the Government to the contractor and that award merges in a decree when the award is made a rule of the court, the Government have no alternative but to pay the whole amount. They will not be within their rights in making any deduction unless the statutory p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... She submitted that the balance amount be released to the judgment debtor. There is no difficulty in allowing this contention of the judgment debtor because the decree holder is only entitled to the amount of decree. 6. Thus, the sum of Rs. 2,73,185/- plus Rs. 10,000/- by way of costs be released to the decree holder. The balance amount deposited with this Court is directed to be released to th....