In Brief
Dr. Poornima Advani purchased an e-stamp paper valued at Rs. 28.10 lakh in July 2016 to buy property. When the paper was lost before use, she sought a refund from the Collector of Stamps but was denied. The High Court partly allowed her petition, ordering refund of principal but not interest. On appeal, the Supreme Court held that the State illegally retained money without legal authority, violating Article 265 of the Constitution. The Court ruled that when money is retained without right, interest—as compensation for deprivation of use—must follow. The appeal was allowed and interest of Rs. 4.35 lakh was awarded, recognizing that interest is normal capital accretion, not punishment, and the State cannot unjustly retain money rightfully belonging to the citizen.
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