TaxTMI 
TaxTMI 
2024 (8) TMI 190
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....ded in an arbitral award. The lis 2. By the following order dated 11 March 2024, OMP (Enf) (Comm) 65/2021 was disposed of: "1. These are petitions seeking execution of the award dated 20.03.2020. 2. With consent of the parties, it is directed that the amount awarded in the award dated 20.03.2020, along with interest at the rate of 10% per annum with effect from 20.03.2020, shall be paid in 7 Equal Monthly Instalments (EMIs) starting from March, 2024 in the following terms:- a. The instalment for the month of March, 2024 shall be paid on or before 31.03.2024. b. The instalment for the month of April, 2024 shall be paid on or before 20.04.2024. c. Thereafter, the remaining instalments shall be paid on or before 10th day of every m....
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....h Court of Bombay in Islamic Investment Company v. U.O.I. (2002) 4 Bom CR 685, which, following an earlier decision of the Supreme Court in All India Reporter Ltd v. Ramchandra D. Datar (1961) 2 SCR 773, holds that, once an amount becomes payable to a decree holder under a decree, it losses its original character and assumes the character of a judgment debt. In the absence of any provision of the Income Tax Act, 1961, which envisages deduction of TDS while paying a judgment debt, the Bombay High Court, following the Supreme Court, held that no TDS could be deducted from the said amount. 8. Mr. Ramesh Singh, learned Senior Counsel for the respondent submitted, yesterday, that if such a view were to be accepted, it would provide fodder for i....
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....nt or any part thereof." 11. This Court has, however, followed All India Reporter and Islamic Investment Company without hedging in the decision with any such caveat. One such judgment is that rendered by Vibhu Bakhru J in Voith Hydro Ltd v. NTPC Limited 2021 SCC OnLine Del 1325. Paras 31 to 37 of the said report may be reproduced thus: "31. The next question to be addressed is whether NTPC is entitled to credit for the TDS deducted from the payments made to Voith. 32. Mr Mukhopadhaya had referred to the decision of the Supreme Court in All India Reporter Ltd. v. Ramchandra D. Datar (supra), wherein the Supreme Court had held that once a claim - in that case, a claim for compensation to an employee for wrongful termination of an employ....
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.... the Code of Civil Procedure". 34. The Court further observed that there was no provision under the Income Tax Act or under the Code of Civil Procedure, 1908 where an amount of interest payable under a decree would be subject to TDS. 35. In Glencore International AG v. Dalmia Cement (Bharat) Limited 2019 SCC OnLine Del 9634: Ex. P. 75/2015 dated 31.07.2019, this Court, inter alia, referred to the following decisions: (i) All India Reporter v. Ramachandra D. Datar, (ii) V.K. Dewan v. DDA, Execution Petition No. 194/2005, Delhi High Court. (iii) Sino Ocean Limited v. Salvi Chemical Industries Limited, Chamber Summons No. 76/2013 in Execution Application (Lodg.) No. 263/2012. (iv) American Home Products Corporation v. MAC Laborator....
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....essal Commission ["the NCDRC" hereinafter] in its judgment dated 15 January 2020 in Nidhi Mittal v. Prateek Infra Projects India Pvt Ltd CC No. 1508/2018, restraining the builder in that case from deducting in tax at source on the compensation held by the NCDRC to be payable to the consumer before it. Para 32 of the judgment of the NCDRC reads thus: "32. Before parting, I may make it clear that the interest @12% p.a. on the refund of the amount which has been awarded as compensation is not factually interest on refund and, therefore, there is no question of deducting any tax on source." 14. The Supreme Court, in the Special Leave Petition preferred against the aforesaid decision, in the penultimate paragraph, "(vacated) the direction of ....
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....d directed to be paid by this Court vide order dated 11 March 2024. 19. Ex. Appl. (OS) 952/2024 is, therefore, dismissed. 20. Ex. Appl. (OS) 948/2024, to the extent it seeks revival of the present enforcement petition is disposed of by clarifying that the respondent would make payments in accordance with the order dated 11 March 2024 without deducting any TDS thereon. The direction is modified only to the extent that the instalments shall start commencing from the month of August 2024. In other words, (a) the instalment for the month of August 2024 shall be paid on or before 31 August 2024, (b) the instalment for the month of September 2024 shall be paid on or before 20 September 2024 and (c) thereafter, the remaining instalments sh....