Case Details

  • Case: The Aruna Sugars Higher School vs The Joint Director of School Education
  • Petition: Special Leave to Appeal (C) Nos. 27140‑27141/2023
  • Court: Supreme Court of India, Court No.3, Section XII
  • Date of hearing/order: 04‑05‑2026
  • Origin: Impugned final judgment and order dated 07‑03‑2023 in WA Nos. 1231/2016 and 1232/2016 of the Madras High Court

Parties Involved

  • Petitioner: The Aruna Sugars Higher School
  • Respondent: Joint Director of School Education
  • Counsel for petitioner: Mr. K. Parameshwar, Sr. Adv.; Mr. A. Selvin Raja, AOR; Mr. Thiyaga Sezhian, Adv.; Shri Vellari K.N., Adv.
  • Counsel for respondent: Mr. Sabarish Subramanian; Mr. Vishnu Unnikrishnan, AOR; Ms. Jahnavi Taneja, Adv.; Mr. Veshal Tyagi, Adv.; Mr. K.S. Badhrinathan, Adv.; Ms. Arpitha Anna Mathew, Adv.; Mr. Sai Shashank, Adv.; Mr. Ayush Anand, AOR
  • Bench: Hon’ble Mr. Justice J.K. Maheshwari and Hon’ble Mr. Justice Atul S. Chandurkar

Issues / Allegations / Violations

  • Petition challenged the High Court’s order concerning interest calculation and litigation expenses related to the dispute between the school and the education department.
  • Specific allegation: Whether interest should be paid at 6 % per annum and the quantum of interest payable.

Findings & Observations

  • The Court observed that interest at 6 % per annum is applicable.
  • It deemed that a lump‑sum payment of interest amounting to Rs 10,00,000 (Rupees ten lakhs only) would settle the interest controversy.
  • The Court clarified that its decision will not adversely affect any pending civil suit, if any.

Penalties / Settlements / Directions

  • The respondent is directed to receive a lump‑sum interest payment of Rs 10,00,000 within eight weeks from the date of the order.
  • Litigation expenses held in the Fixed Deposit Receipt (FDR) are to be paid to the respondent upon furnishing of bank account details.

Corrective Actions & Future Obligations

  • Petitioner must remit the stipulated interest amount within the eight‑week period.
  • Petitioner must provide its bank account details to facilitate release of the FDR litigation expenses.
  • No further action is required concerning the pending civil suit.

Final Ruling & Enforcement

  • The Special Leave Petition is disposed of.
  • All pending applications, if any, are also stood disposed.
  • The order is effective immediately and enforceable as directed by the Court.