IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE M.L.JOSEPH FRANCIS MONDAY, THE 4TH JULY 2011 / 13TH ASHADHA 1933 Co.Appeal.No. 21 of 2011() ----------------------------------- (AGAINST THE ORDER DATED 9.3.2011 IN C.A.NO.158/2011 IN CO.APPL.NO.4/2011 IN CO.PETITION NO.26 OF 2006 OF THE COMPANY COURT, ERNAKULAM) .................... APPELLANT (S): APPLICANT: ----------------------------------------- P.P. MOHAMMED BASHEER, KUZHIKKAD HOUSE, THURAKKAL, KONDOTTY. BY ADV. SRI.K.RAVIKUMAR RESPONDENT(S): RESPONDENT: ---------------------------------------------- THE OFFICIAL LIQUIDATOR, HIGH COURT OF KERALA, ERNAKULAM. BY ADV.SRI.K.MONI THIS COMPANY APPEAL HAVING COME UP FOR ADMISSION ON 04/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M.JOSEPH & M.L.JOSEPH FRANCIS, JJ. ------------------------------------------------------ Company Appeal No.21 of 2011 ---------------------------------------------- Dated, this the 4th day of July, 2011 J U D G M E N T K.M.Joseph, J. This appeal is filed against the order passed by the Company Court in Co.Appl.No.158/2011 in Co.Appl.No.4/2011 in Co.Petition No.26/2006. Appellant is the auction purchaser. The entire amount less EMD in a sum of Rs.58 lakhs was to be deposited by the auction purchaser by 30.7.2010. The appellant did not deposit the amount within time. Appellant applied for two month's time for deposit. Two month's time was granted. There was no stipulation for interest. Even then the appellant did not deposit the amount. Thereafter, appellant sought time. He paid Rs.15 lakhs. Appellant was granted one month's time on condition that the appellant should pay interest at the rate of 6% for the balance amount. Appellant paid Rs.10 lakhs on 29.12.2010. That did not represent the full amount. He again sought one month's time. That application was allowed subject to the condition that the appellant will pay interest at 24% on the amount. Thereafter, it is the case of the appellant that he has paid the entire amount. Then he filed application for reducing the interest imposed on him. That application has been dismissed stating that interest was COA 21/2011 -2- fixed as a condition for extension of time and Court is not inclined to reduce it. 2. We heard the learned counsel for the appellant and Sri.K.Moni, learned counsel appearing for the respondent. 3. Now the appellant has paid the entire amount and he would submit that the amount involved is very huge and there is no precedent. Sri.Moni also submits that there is no precedent as such for ordering interest at 24%. Having considered the contentions and having regard to interest of justice we allow the appeal partly and modify the order under challenge and direct that the application will stand allowed to the extent we reduce interest from 24% to 12%. Necessarily the Official Liquidator will refund back the amount in excess of 12%. (K.M.JOSEPH) JUDGE. (M.L.JOSEPH FRANCIS) JUDGE. MS COA 21/2011 -3-