#interest recovery

The Bombay High Court held that once the full admitted tax is paid and a Tribunal appeal is filed, Section 112(9) CGST Act automatically stays recovery of disputed interest, as Section 112(8) requires no pre-deposit. The ruling shields taxpayers from coercive recovery during appeals, confirming the stay operates without a separate application.

Gauhati HC rules that a plaintiff cannot seek damages for fraud while simultaneously demanding specific performance of an illegal agreement. The court upheld a refund of Rs. 12,00,000 with 10% annual interest from the payment date but dismissed claims for lost income and mental agony, reinforcing the principle that illegality voids equitable remedies.

The Punjab & Haryana High Court ruled that interest paid under the Electricity Supply Code 2014 constitutes lawful compensation for wrongful withholding of funds by a public utility. The court held that such interest cannot be recovered, even if the original order did not explicitly direct its payment, as it offsets the financial loss suffered by the petitioner due to delayed compliance.