HUKUMCHAND GULABCHAND JAIN vs FULCHAND LAKHMICHAND JAIN AND OTHERS

The Supreme Court held that the appellant, a trustee of a public temple, was not liable to pay compound interest on trust funds as it was not proven that the funds were used in his business. The Court ruled that interest could only be charged on equitable grounds, specifically simple interest at 4% per annum, since the appellant retained the principal uninvested for over twenty years. The Court clarified that the rule of damdupat does not apply to trustees as they are not considered borrowers of trust funds, thus upholding the High Court's decision to remand the case for further ascertainment of the amount due to the temple.