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M/s.Sikora Salvador International Limited v. Chennai Metropolitan Development Authority

Madras HC24 Jan 2025REV.APLW/146/2024

Case brief

AI extract

What is this about?

Sikora Salvador International Limited v Chennai Metropolitan Development Authority; Rev.Aplw.No.146/2024; review application Order 47 Rule 1 Section 114 CPC; review of order dated 14.09.2022 in WP.No.24568/2022; refund of statutory dues/planning permission charges Rs.33,85,000; interest for late remittance Rs.8,97,082 refundable though interest not sanctioned in Award; Rs.33,00,000 already paid; balance within six weeks; paragraph 4 modified; disposed of, no costs; Madras High Court; S.S. Sundar, J.; 24.01.2025.

What did the court decide?

Review application disposed of by modifying paragraph No.4 of the order dated 14.09.2022 in WP.No.24568/2022 to direct refund of Rs.33,85,000/- together with interest of Rs.8,97,082/-; balance payable within six weeks; no costs. ¶31

M/s.Sikora Salvador International Limited Vs Chennai Metropolitan Development Authority — Madras HC (2025) — LawSathi Research

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Rev.Aplw.No.146/2024

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 24.01.2025

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CORAM :

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THE HONOURABLE MR. JUSTICE S.S. SUNDAR

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Rev.Aplw.No.146/2024

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Ms/.Sikora Salvador International Limited rep.by its Director Ramakrishnan having office at No.259/1, Bye Pass Road Poonamallee, Chennai 600 056.

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... Petitioner

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Vs.

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Chennai Metropolitan Development Authority rep.by its Member Secretary Having office at No.1, Gandhi Irwin Road Egmore, Chennai 600 008.

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... Respondent

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Prayer : Review application filed under Order 47 Rule 1 read with Section 114 of CPC to review the order dated 14.09.2022 insofar as WP.No.24568/2022.

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For Petitioner : Mr.S.Karthikeyan for Mr.A.Arvind Athithan For Respondent : Mr.Y.Bhuvanesh Kumar Standing counsel

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https://www.mhc.tn.gov.in/judis

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JUDGMENT

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Rev.Aplw.No.146/2024

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[Order of the Court was made by S.S.SUNDAR, J.,]

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(1)This review application is filed by the review petitioner to review the order dated 14.09.2022 made in WP.No.24568/2022 insofar as it relates to interest for the delayed payment.

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(2)This Court, while passing the order in the writ petition, specifically held

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that interest is not sanctioned in the Award. However, it is to be noted that a sum of Rs.33,85,000/- was collected along with the interest for the delay in payment. It is not in dispute that a sum of Rs.8,97,082/- was collected towards interest for the late remittance. Therefore, this amount which had been collected by the respondent, has to be refunded.

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(3)The learned Standing counsel for the respondent submitted that interest component was due to the delay in payment of the charges requested by the CMDA for the purpose of planning permission. Interest is levied by way of penalty for non-payment of charges on time and the direction of this Court was to refund the amount that was collected towards the statutory dues. Since the application for development was withdrawn and

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https://www.mhc.tn.gov.in/judis

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Rev.Aplw.No.146/2024

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the amounts were directed to be refunded, the interest collected for delay remittance, is not different from the amount which they have collected.

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(4)Therefore, paragraph No.4 in the order dated 14.09.2022 in

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WP.No.24568/2022 is modified to read as follows:-

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''4.Regarding refund of a sum of Rs.33,85,000/-, the respondents are directed to refund a sum of Rs.33,85,000/- along with interest namely, a sum of Rs.8,97,082/- to the petitioner without any delay.''

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(5)It is now represented that a sum of Rs.33,00,000/- had already been paid. Therefore, the balance amount indicated above, has to be paid within a period of six weeks from the date of receipt of a copy of this order.

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(6)The review application stands disposed of accordingly. No costs.

24.01.2025

Internet : Yes

The Member Secretary Chennai Metropolitan Development Authority Having office at No.1, Gandhi Irwin Road Egmore, Chennai 600 008.

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