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