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| HC directs guarantor to pay Rs. 5 lakhs surety amount | | | EARLY TIMES REPORT
Jammu, Nov 30: Justice Sunil Hali of J&K High Court Jammu, in an application for recovery filed by Union of India seeking recovery of Rs 10, 35, 805 with interest @ 18 PA which comes to Rs 41, 09, 000, has directed the Guarantor Sunil Gupta to pay 50% of the total amount of Solarium and interest payable in terms of Supreme Court order which is of the amount of Rs 10, 35, 508.
After hearing Sernior Adv AV Gupta appearing for the respondents (Guarantor) and Adv Ajay Sharma appearing for the Union of India, justice Hali referred a judgment of the Supreme Court and observed that in terms of the surety bond executed by respondent Sunil Gupta, he has made himself liable to pay Rs 19, 09,852 which is 50% of total amount of award Rs 38, 19, 705, the interest and solarium worked out by the Union of India on the total amount awarded accounts at Rs 10, 35, 805. In terms of the surety bond the respondent No 1 is liable to 50% of the said amount.
Regarding the interest, Court held that respondent NO 1 has not received but has only acted as surety of the deceased claimant. It cannot be said that any amount was withheld by the Surety; he is only discharging the liability of the deceased claimant who had received the amount. Interest is payable as compensation for withholding of the amount which is due to other person. In the present case no amount has been withheld or utilized by the surety so no interest is payable by him, however, he is liable to pay interest @ 7% PA from the date of this judgment announced. JNF |
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