Amol Rattan Singh, J. - (1.) The appellant herein had instituted a suit for declaration to the effect that it is entitled for compound interest at the rate of 18% per annum, on an amount of Rs. 88,014/ - from 14.03.1990 to 01.09.2008 and further, for declaration that the order dated 17/23.04.2009, passed by the 1st respondent herein (defendant No. 1 before the learned Civil Judge, Karnal), i.e. the General Manager of the Food Corporation of India, is null and void and not binding upon the appellant -plaintiff. The appellant further sought a direction to the respondents -defendants to release an amount of Rs. 22,003/ -, alongwith compound interest at the rate of 18% per annum, from 14.03.1990 till the date that the amount was actually paid to the appellant.
(2.) The background leading up to the filing of the suit was that the appellant is stated to be a Company (actually a firm), engaged in transport business, that was allotted the work of lifting food grains from the godowns of the respondent Corporation up to the Railway head, for the period from 15.03.1988 to 14.03.1990. Upon completion of the contract, the respondents cleared various bills raised by the appellant but deducted a sum of Rs. 1,10,017/ -, on the ground that it was to be so deducted towards payment into the Employees' Provident Fund. This deduction is stated to have been challenged by the appellant before the respondents themselves and eventually, on 01.09.2008, the respondents released a sum of Rs. 88,014/ -, vide a cheque drawn on the State Bank of India. Thus, out of the total sum of Rs. 1,10,017/ -, Rs. 22,003/ - was still not paid, which also was therefore sought to be released, by way of the suit instituted, alongwith interest on the entire amount of Rs. 1,10,017. The suit itself was instituted on 11.09.2009. The amount of Rs. 22,003/ - was withheld by way of deduction towards income tax paid, to the extent of 20% of the total amount payable.
(3.) Upon notice being issued by the Civil Judge (Jr. Division), Karnal, the respondents -defendants took a preliminary objection with regard to the suit being completely time barred and on merits pleaded that the amount of Rs. 1,10,017/ - was deducted on account of contribution to be made to the Employees' Provident Fund and that the appellant -plaintiff was required to submit a clearance certificate from the Employees' Provident Fund authorities, which it did not submit and eventually the amount was transferred to the income head of the Corporation. The documents required to be furnished were only furnished by the appellant on 10.03.2008 and therefore, after deducting Rs. 22,003/ - by way of tax paid, the remaining amount of Rs. 88,014/ - was paid. It was specifically pleaded that the appellant did not claim the amount for a long time and as such, the respondent had no other option but to transfer the amount to the income head of the Corporation. The appellant served a registered notice only on 30.09.2008 and also filed a writ petition before this Court, which was disposed of vide order dated 04.02.2009, with a direction to the respondents to take cognizance of the claim raised by the petitioner through its legal notice and to dispose it off within a period of four months. Consequently, the 1st respondent, vide his order dated 17/23.04.2009, had rejected the claim of the appellant with regard to the payment of Rs. 22,003/ - on account of deduction by way of income tax, as also had rejected the claim for 18% interest from 1990 to 2008 (on the amount of Rs. 88,014/ - having been paid on 01.09.2008, as already noticed).;