Rule of Appropriation in arbitration cases, short deposit is made.

The Appropriation is such that the amount payable will be first appropriated towards first the Interest payable, second the cost payable and third the principal.
For Example: The Award or Appellate Decree directs that Principal of Rs 50, Interest of Rs. 30 and Cost of Rs. 20 is payable making the award/decretal amount to be Rs. 100 in total, and the Judgment Debtor makes short deposit i.e., pays only Rs. 80, then the appropriation would be in the following manner:
Award/Decretal Amount
|
|
|
Principal | Rs.50 |
|
Interest | Rs.30 |
|
Cost | Rs.20
|
|
Short Deposit made | Rs.80 (Deposited) | Balance Rs.20/- (Principal) |
Actual Appropriation
| Rs.80 | |
Interest | Rs.30 | Interest will keep accruing |
Cost | Rs.20 | |
Principal | Rs.50 |




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