V. Kala Bharathi & Ors. Vs. Oriental Ins. Co. Ltd., Br. Chitoor
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The Code of Civil Procedure, 1908 - Order XXI Rule (1)
Whether the amount deposited by the judgment debtor in a decree is to be adjusted first towards interest or towards principal decretal amount? - If the amount deposited by the judgment debtor falls short of the decretal amount, the decree-holder is entitled to apply the rule of appropriation by appropriating the amount first towards interest, then towards costs and subsequently towards principal amount due under the decree - The appellants herein are entitled to the amount awarded by the Executing Court, as the amounts deposited by the judgment debtor fell short of the decretal amount - After such appropriation, the decree-holder is entitled to interest only to the extent of unpaid - principal amount. Hence, interest be calculated on the unpaid principal amount.
BENCH :
Advocates For the Appellant(s) :
Topic(s)-Decree - Appropriation of money