THE HON'BLE SRI JUSTICE K.G.SHANKAR CMSA Nos.68, 69 & 70 of 2007 Date: 17.11.2011 Between: Anaparthi Sitamahalakshmi and others. ..... Petitioners. AND Parimi Arjunarao and others. .....Respondents. The Court made the following : THE HON'BLE SRI JUSTICE K.G.SHANKAR CMSA Nos.68, 69 & 70 of 2007 COMMON JUDGMNET: This order disposes of CMSA Nos.70, 69 and 68 of 2007. The appellants are the legal representatives of Creditor No.37 in I.P.No.3 of 1979 on the file of the Senior Civil Judge, Kadapa. 2. They seek for an order for the payment of the interest over the fixed deposits pursuant to the understanding. 3. The facts leading to the case are: The 1st respondent filed a debtor I.P. During the pendency of the Insolvency Petition, a compromise was reached and a composite compromise scheme was evolved through orders in I.A.No.841 of 1989 by the Insolvency Court. The creditors of the 1st respondent agreed to receive 65% of the original debt amount. Thereupon, the amounts were deposited in fixed deposits. The creditors were paid 65% of the original debt amount. However, during the interregnum, interest accrued on the fixed deposits. 4 . The creditors claimed the interest portion on the ground that its constitutes 65% of the original debt. The 1st respondent opposed the claim contending that the creditors were entitled to the 65% of the original debt only and that the 1st respondent was entitled to the interest over this amount. The learned Senior Civil Judge held that the creditors were entitled to receive the interest portion, which accrued on the fixed deposits. In the appeal filed by the 1st respondent, the learned District Judge, West Godavari upset the orders of the Insolvency Court in I.A.No.1262 of 2001 and held that the 1st respondent herein was entitled to receive the interest portion accruing on the fixed deposits. 5. I am afraid that this view of the learned District Judge is not correct. Once the amount came to be deposited in the fixed deposits, the 1st respondent lost claim over the amounts. He cannot lay hands over the amounts, which were the subject of fixed deposits. If the creditors had withdrawn the amounts forthwith, they were entitled to their respective shares of money. If they did not withdraw their respective shares, they would be entitled to interest over their share of amounts as it is the amounts of the creditors that was lying in fixed deposits. The 1st respondent has nothing to do with the same. 6. Consequently, I agree with the contention of Sri A. Veeraswami, learned counsel for the appellants that the legal representatives of the deceased creditor No.37 are entitled to their respective share of interest accruing on the fixed deposits over the amount of 65% of the original debt. I.A.No.1262 of 2001 consequently deserves to be allowed. I am not able to agree with the findings of the learned appellate Judge. The view taken by the learned appellate Judge is erroneous and is liable to be set aside. 7 . The orders of the learned Senior Civil Judge, Tanuku in I.A.No.1262 of 2001 in I.P.No.3 of 1979 are restored. The petitioners are entitled to the interest accruing over their share of amounts, which were invested in fixed deposits. The appeals are accordingly allowed. No costs. _________________________ JUSTICE K.G.SHANKAR Date:17.11.2011 mrb