Authority: Supreme Court of India

Order Date: July 30, 2026

Case Overview

  • Parties: Food Corporation of India (Petitioner) and E.S.T. Moorthy (Respondent).
  • Origin: Appeal filed under Special Leave to Appeal (SLP) No. 10358/2026, arising from the High Court of Madras judgment dated 06‑10‑2025 in APPSU No. 501/2017.
  • Dispute: Lease agreement lacking explicit interest clause; High Court had fixed interest at 12% per annum, treating the transaction as commercial.
  • Supreme Court Findings: Observed that the High Court’s characterization of the lease as a commercial transaction may be incorrect; consequently, the interest component was reassessed.
  • Decision on Interest: Modified the awarded interest rate from 12% per annum to 9% per annum based on factual findings against the appellant.

Final Outcome

  • The appeal is allowed in part; the interest rate is set at 9% per annum.
  • All pending applications, if any, are disposed of.

Topics: Interest Rate Adjustment, Lease Dispute