State of U.P. Thr. Secretary and Ors. vs Prem Chopra

Court

Supreme Court of India

Date

25 March 2022

Case No.

Civil Appeal No. 2417 of 2022

Result

Allowed

Bench

S. Abdul Nazeer, Vikram Nath

Citation

[2022] 2 S.C.R. 990 : 2022 INSC 346

Headnote

Interim order: Interim order of stay – Effect of – Held: Imposition of a stay on the operation of an order means that the order which has been stayed would not be operative from the date of passing of the stay order – However, it does not mean that the stayed order is wiped out from the existence, unless it is quashed – Once the proceedings, wherein a stay was granted, are dismissed, any interim order granted earlier merges with the final order and interim order comes to an end – In such a situation, it is the duty of the Court to put the parties in the same position they would have been but for the interim order of the court, unless the order granting interim stay or final order dis-missing the proceedings specifies otherwise – On the dismissal of the proceedings or vacation of the interim order, the beneficiary of the interim order would have to pay interest on the amount withheld or not paid by virtue of the interim order – On facts, as regards the liability of the respondent to pay interest for the period during which recovery of license fee was stayed by the High Court and eventually the writ petition was dismissed, the High Court erred in holding that the respondent was not liable to pay interest on arrears of excise revenue due to the protection given under the interim order – Thus, the order passed by the High Court set aside –U.P. Excise Act, 1910 – U.P. Excise (Settlement of License for Retail Sale of Country Liquor) Rules, 2002.

Shree Chamundi Mopeds Ltd. V. Church of South India Trust Association CSI CINOD Secretariat, Madras (1992) 3 SCC 1 : [1992] (2) SCR 999; Kanoria

Chemicals and Industries Ltd. and Others v. U.P. State Electricity Board and Others (1997) 5 SCC 772 : [1997]

(2) SCR 844; Rajasthan Housing Board and Others v. Krishna Kumari (2005) 13 SCC 151; South Eastern Coalfields Ltd. V. State of M.P. and Others (2003) 8 SCC 648 : [2003] (4) Suppl. SCR 651; Nava Bharat Ferro Alloys Limited v. Transmission Corporation of Andhra Pradesh Limited and Another (2011) 1 SCC

216 : [2010] (14) SCR 900; State of Rajasthan and Another v. J.K. Synthetics Limited and Another (2011)

12 SCC 518 : [2011] (10) SCR 993 – referred to.

The Order of the Court was passed by S. ABDUL NAZEER, J. (1) Leave granted. (2) This appeal is directed against the order dated 10.05.2018 passed by the High Court of Judicature at Allahabad (Lucknow Bench) in Misc. Single No. 2582 of 2003 whereby the High Court has set aside the demand made by the appellants for a sum of Rs.10,08,210.51 towards interest on arrears of excise revenue. (3) Brief facts necessary for disposal of this case are as under: On 14.03.2002, the Government of Uttar Pradesh declared the Excise Policy for the year 2002-03. On the basis of the Excise Policy and under the

View Subscription Plans →