interest payment on refund amount from court
16-Apr-2026 (In Property Law)
I purchased a property through court auction in 2008 in AP and deposited the full amount in court. Later due to a legai issue, court has declared the sale as invalid in 2025 and ordered to refund my money along with interest. But from the court records, it is found that the amount paid by me in 2008 was not deposited by the court in any Bank. My lawyer says I have to accept the original amount only and nothing can be done. Remedy for this?
Hi,
Your lawyer’s advice is not fully correct. If the court has already ordered refund with interest, you are legally entitled to it — even if the amount was not deposited in a bank. That is an internal issue of the court/department, not your fault.
You can File an Execution Petition (EP) to enforce the refund order with interest , Seek appropriate interest/compensation for long delay (2008–2025) , If payment is denied or limited, you can approach the High Court challenging non-compliance
Courts have held that a person cannot be made to suffer due to administrative lapse. So you are not restricted to just the principal amount.
There is a strong remedy available. Let me know if you want to proceed with execution or draft petition.
The advice given to you is incorrect and legally unsustainable.
Once the court has declared the sale invalid and directed refund “with interest,” you are legally entitled to full restitution, not merely the principal amount. The failure of the court/office to deposit or manage the funds cannot prejudice your rights.
You should immediately take the following steps:
1. File an Execution Petition seeking enforcement of the decree specifically for refund with interest as ordered.
2. If the decree is silent/ambiguous on interest, file an application for clarification/modification seeking appropriate interest for the entire period (2008–2025) on principles of restitution.
3. Move an application placing on record that the amount was not deposited/handled properly and seek accountability of the concerned court office/authority.
4. In appropriate circumstances, you may also invoke writ jurisdiction for administrative lapse causing financial loss.
The doctrine of restitution mandates that you be placed in the same financial position as if the sale had never occurred. Accepting only the principal would defeat this settled principle.
Do not accept a reduced settlement. Enforce the decree strictly and pursue full lawful recovery with interest.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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