2023 (3) TMI 896

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....cted against the order of the learned Single Judge dated 4th of August, 2021 whereby WPA 5949 of 2020 filed by the appellants in FMA 1262 of 2022 has been disposed of with a direction to the appellant in FMA 152 of 2022 to refund the sum received from the writ petitioner as transfer free. 2. The facts in nutshell are that appellants in FMA 1262 of 2022 (writ petitioners) had filed the writ petition challenging the demand of transfer fee by the respondent No.1 (appellant in FMA 152 of 2022) contained in the letter dated 24th of June, 2019 in respect of 4 lease deeds dated 16.02.1999, 29.12.1990, 11.11.2003 and 04.05.2010 and seeking a declaration that no such transfer fee was payable. The plea of the writ petitioner was that the proceedings....

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....e was unsustainable and the receipt of payment of such unsustainable demand was vitiated. Accordingly, learned Single Judge directed the respondent No.1 to refund the sum received as transfer fee within six weeks. 4. The order of the learned Single Judge has been challenged by the respondent No. 1 in FMA 152 of 2022 on the ground that respondent No. 1 was entitled to recover the transfer fee whereas the writ petitioner has challenged the order of the learned Single Judge in FMA 1262 of 2022 claiming the interest on the amount directed to be refunded. 5. Having heard learned Counsel for the parties and on perusal of the record, we find that so far as FMA 152 of 2022 filed by the respondent No.1 questioning the direction of the learned Sing....

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....22 is concerned, the writ petitioner is claiming interest on the amount deposited towards transfer fee under protest. The record reflects that after approval of the resolution plan the respondent No.1 had issued the demand notice dated 24.06.2019 demanding the sum of Rs. Rs. 1,42,01,342/- towards transfer fee. Writ petitioner vide covering letter dated 30th July, 2019 had deposited the amount under protest without prejudice to the right to dispute the demand by stating that the writ petitioner was in urgent need of an NOC for availing of the loan for working capital and up gradation and that the litigation on the issue was likely to take some time to reach at a decision. Thereafter vide communication dated 19th August, 2019, the writ petiti....

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....est. 12. Learned Counsel for the respondent has referred to the provisions of the Interest Act and has submitted that interest can be paid only if loss is suffered. In the present case, the writ petitioner has definitely suffered loss of interest on the amount unlawfully demanded which otherwise would have earned interest if kept in deposit. As against this, reliance upon the judgment of the Hon'ble Supreme Court in the matter of New Delhi Municipal Committee vs. Kalu Ram and Another reported in (1976) 3 SCC 407 has been placed by learned Counsel for the writ petitioner in support of the plea that the Insolvency and Bankruptcy Code is self-contained Code. 13. In the aforesaid circumstances, we are of the view that the writ petitioner is e....