TaxTMI 
TaxTMI 
2024 (8) TMI 190
X X X X Extracts X X X X
X X X X Extracts X X X X
....id 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 month. 3. The statement made on behalf of the judgment-debtor by the learned senior counsel that the above payment schedule will be complied with, shall be binding upon the judgment-debtor. 4. In case the same is not complied with, the petitioner in addition to reviving the present enforcement petitions, shall also be entitled to initiate contempt proceedings. 5. It is made clear that there is no variation in the interest component pre-award. 6. In addition, the paragraph 16 of the order dated 24.01.2024 is modified and reads as under;- "16. The applications are rejected and the captioned executions are allowed."" 3. As there has been no compliance with the direction for the deposit as contained in the above order, the present applications have come to be filed. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... security in the sum of Rs. 2,06,269/- to the satisfaction of the Prothonotary and Senior Master before withdrawing any sum from the Sheriff of Bombay. 15. The petitioners/decree holder shall be allowed to withdraw the balance decretal amount lying with the Sheriff of Bombay. He shall however give security for the sum of Rs. 2,06,269/-. 16. The learned Counsel for the decree-holder may be granted liberty to apply for being released from the security, if it gets a certificate or an adjudication from the Income-tax Authority that it is not liable to pay tax in India on the decretal amount 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. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (Lodg.) No. 263/2012. (iv) American Home Products Corporation v. MAC Laboratories Pvt. Ltd. and Anr. (1986) 1 SCC 465, (v) Islamic Investment Company v. Union of India (UOI) and Anr., (vi) S.S. Miranda Ltd. v. Shyam Bahadur Singh (1985) 154 ITR 849. 36. After referring to the aforesaid decision, this Court observed as under: "I may, however, note that these judgments do enunciate the principle, which is, that once a claim merges into a decree of the Court it transcends into a judgment-debt and, therefore, only those adjustments and deductions can be made which are permissible under the Code of Civil Procedure, 1908. The judgments encapsulate the theme that a decree should be executed according to its tenor unless modified by a statute such as the 1962 Act." 37. Ms Anand also did not dispute that TDS was not liable to be deducted on judgment debts. However, she contended that the payments had been made in Indian currency and therefore, were subjected to TDS and that the same had been accepted by Voith without any protest." 12. The contention of the respondent in the present case is that TDS is deductable from the amount payab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Hydro Ltd and Glencore International, are directly on the point and followed the decision of the Supreme Court in All India Reporter, I am constrained to hold that the respondent cannot be permitted to deduct TDS from the amount awarded to the petitioner by the arbitral award under execution and 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 shall be paid on or before 10th of every month. 21. The application stands disposed of accordingly. ....