Case Note & Summary
The judgment arises out of three applications in Suit No. 121 of 2014 pending before the Bombay High Court. The plaintiffs, L.J. Tanna Enterprises Pvt. Ltd. and others, filed a suit against 63 Moons Technologies Ltd. and others seeking declarations and injunctions regarding certain transactions. During the pendency of the suit, National Agricultural Co-operative Marketing Federation (NAFED) deposited Rs. 32,14,94,304/- in the Delhi High Court in compliance with an order in a different proceeding, believing it was liable to pay that amount. Subsequently, the amount was transferred to the Bombay High Court. NAFED filed Chamber Summons No. 662 of 2019 seeking refund of the amount, contending that it was deposited under a mistaken belief of liability. The plaintiffs filed Notice of Motion No. 58 of 2019 seeking withdrawal of the amount. The court examined the rival claims. It noted that the plaintiffs' suit is for declaration and injunction, not for recovery of money, and no decree or order has been passed in their favor entitling them to the amount. The court held that NAFED deposited the amount under a mistake and is entitled to its refund. The court allowed NAFED's Chamber Summons and dismissed the plaintiffs' Notice of Motion. The court also disposed of the interim application filed by defendant No. 2 as infructuous.
Headnote
A) Civil Procedure - Deposit under Mistake - Refund - NAFED deposited Rs. 32,14,94,304/- in Delhi High Court under mistaken belief of liability - Court held that NAFED is entitled to refund of the amount as the deposit was made under a mistake and no decree or order exists in favor of plaintiffs entitling them to the amount (Paras 1-22).
B) Interpleader Suit - Entitlement to Fund - Plaintiffs have no decree or order in their favor - The suit is for declaration and injunction, not for recovery of money - Plaintiffs cannot claim the deposited amount as they have no legal right to it (Paras 23-30).
C) Inherent Powers - Section 151 CPC - Court can order refund of deposit made under mistake to prevent abuse of process - NAFED's Chamber Summons allowed, plaintiffs' Notice of Motion dismissed (Paras 31-35).
Issue of Consideration
Whether NAFED is entitled to refund of Rs. 32,14,94,304/- deposited in the Delhi High Court and subsequently transferred to this Court, and whether the plaintiffs are entitled to withdraw the said amount.
Final Decision
Chamber Summons No. 662 of 2019 filed by NAFED is allowed. NAFED is entitled to refund of Rs. 32,14,94,304/- along with accrued interest. Notice of Motion No. 58 of 2019 filed by plaintiffs is dismissed. Interim Application (Lodg.) No. 39615 of 2022 is disposed of as infructuous.
Law Points
- Deposit under mistaken belief
- entitlement to refund
- no decree in favor of plaintiff
- Order 23 Rule 1 CPC
- Section 151 CPC
- inherent powers of court
- restitution
- interpleader suit
Case Details
2024 LawText (BOM) (02) 188
Notice of Motion No. 58 of 2019 in Suit No. 121 of 2014, Chamber Summons No. 662 of 2019 in Suit No. 121 of 2014, Interim Application (Lodg.) No. 39615 of 2022 in Notice of Motion No. 212 of 2014
Mr. Sarosh Bharucha with Mr. Bhushan Shah, Mr. Akash Jain, Mr. Aakash Mehta and Mr. Mohammed Lokhandwala i/by Manukhlal Hiralal & Co. for Plaintiff and for Applicant in NMS-58-2019; Mr. Ravi Kadam, Senior Advocate and Mr. Ashish Kamat, Senior Advocate with Mr. Chirag Kamdar, Mr. Shlok Parekh, Ms. Anuya Pathare and Mr. Melvyn Fernandes i/by Vaish Associates for Defendant No.2 and for Applicant in IAL-39615 of 2022; Mr. Atul Chitale, Senior Advocate with Ms. Namita Shetty, Mr. Mohit Prabhu and Ms. Ilina Peehu i/by Cyril Amarchand Mangaldas for Defendant No.1; Ms. Prachi Kolambekar with Ms. Ruchita Chavan i/by Thodur Law Associate for Defendant No.9; Ms. Nikita Vardhan with Mr. Vishal Tiwari i/by Kanga & Co. for Defendant No.30; Ms. Jyoti Chavan, Addl. Government Pleader for State-Defendant No.32; Mr. Shashipal Shankar for the Applicant in CHS-662 of 2019
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Nature of Litigation
Civil suit for declaration and injunction, with ancillary applications for withdrawal of deposited amount and refund of deposit.
Remedy Sought
Plaintiffs seek withdrawal of Rs. 32,14,94,304/- deposited by NAFED; NAFED seeks refund of the said amount.
Filing Reason
NAFED deposited the amount under mistaken belief of liability; plaintiffs claim entitlement to the amount based on alleged rights.
Issues
Whether NAFED is entitled to refund of the amount deposited under mistake?
Whether plaintiffs are entitled to withdraw the deposited amount?
Submissions/Arguments
Plaintiffs argued that they are entitled to the amount as it represents proceeds of their transactions.
NAFED argued that the deposit was made under a mistaken belief of liability and that plaintiffs have no decree or order in their favor.
Ratio Decidendi
A deposit made under a mistaken belief of liability must be refunded to the depositor. The plaintiffs, having no decree or order in their favor, cannot claim the deposited amount. The court has inherent powers under Section 151 CPC to order refund to prevent abuse of process.
Judgment Excerpts
NAFED deposited the amount under a mistaken belief of liability.
Plaintiffs have no decree or order in their favor entitling them to the amount.
NAFED is entitled to refund of the amount deposited.
Procedural History
Suit No. 121 of 2014 filed by plaintiffs. During pendency, NAFED deposited Rs. 32,14,94,304/- in Delhi High Court which was transferred to Bombay High Court. NAFED filed Chamber Summons No. 662 of 2019 for refund. Plaintiffs filed Notice of Motion No. 58 of 2019 for withdrawal. Defendant No.2 filed Interim Application (Lodg.) No. 39615 of 2022. All three applications heard together and disposed by this judgment.
Acts & Sections
- Code of Civil Procedure, 1908: Order 23 Rule 1, Section 151
