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Head Note

Motor Vehicles Act,1988  - Section 173 , The Code of Civil Procedure, 1908  - Order XXI Rule (1) , Constitution of India, 1950  - Article 141

Interest Act, 1978 - Section 3 (3) (c) - Award - Execution of - Money decree - Appropriation of amount under - Mode of - Whether the amount deposited by the judgment-debtor in a decree is to be adjusted first towards interest or towards principal decretal amount - High Court erroneously proceeded on assumption that it amounts to interest on interest which is prohibited under Section 3 (3) (c) of interest Act, 1978 - Decree in question does not contain the mode of appropriation - In absence of such direction, decree-holder is entitled to appropriate the amount deposited by judgment-debtor first towards interest, then cost and thereafter towards principal - Appellants held entitled to amount as awarded by Executing Court, as amounts deposited by judgment-debtor fell short of decretal amount -And after such appropriation, decree-holder is entitled to interest only to the extent of unpaid-principal amount - Impugned judgment and order passed by High set aside and of Executing Court restored - Appeal allowed.

Topic(s)- MACT - Award - Execution of - Money decree