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

  • Writer: Meenakshi Sakhare
    Meenakshi Sakhare
  • Dec 20, 2023
  • 1 min read



 

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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