NDLI: M/s. Shanti Conductors (p) Ltd. & Anr. Vs. Assam State Electricity Board & Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1993 contract entered prior to enforcement Applicability Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Limitation Act, 1963 (36 of 1963) Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (32 of 1993)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993 – Applicability of the Act, 1993 when the contract for supply was entered between the parties prior to enforcement of the Act i.e. 23.09.1992 – Held: The incidence of applicability of the liability under the Act is supply of goods or rendering of service – Entering into an agreement being not expressly or impliedly referred to in the statutory scheme as an incident for fastening of the liability, making the date of agreement as date for imposition of liability does not conform to the statutory scheme – Thus, even if agreement of sale is entered prior to enforcement of the Act, liability to make payment under s.3 and liability to make payment of interest under s.4 shall arise if supplies are made subsequent to the enforcement of the Act.Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993 – Whether the Act, 1993 can be said to have retrospective operation – Held: The Act is not retrospective – The liability of buyer to make payment and day from which payment and interest become payable under ss.3 and 4 does not relate on any event which took place prior to Act, 1993 and, therefore, it is not even necessary to say that Act, 1993 is retroactive in operation – The Act, 1993 is clearly prospective in operation – Retroactive effect. Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993 – s.10 – Limitation – The provision of s.10 of 1993 Act gives overriding effect to “the provisions of Act notwithstanding anything inconsistent herewith contained in any other law for the time being in force” – However, since there is no provision in 1993 Act pertaining to limitation, the provision of Limitation Act pertaining to filing suit shall continue to operate, there being nothing contrary or overriding under 1993 Act – Limitation Act, 1963 is fully applicable with regard to money suit filed by the appellant hence, the question of limitation has to be answered as per Limitation Act 1963 – The limitation for suit for recovery of interest under 1993 Act is a suit of nature which shall be covered by Part X Art.113 of the Schedule – Limitation Act 1963 – Part X Art.113 of the Schedule – Non-obstante clause. Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993 – s.2(d) – Interest – Date from when payable – Held: Payment shall become due from the appointed day – Appointed day is defined in s.2(d) to be “the day following immediately after the expiry of period of 30 days from the date of acceptance or the day of deemed acceptance of any goods or any service from any buyer or supplier” – In the instant case, last supply was completed on 4.10.1993 – Thus, appointed day would be 4.11.1993 – Thus when the payment was not made on 4.11.1993 with regard to amount due, i.e. the interest as per s.4, the limitation for filing the suit will start running – Art.113 provides for “time from which period begins as when the right to sue accrues” – s.4 creates statutory liability to pay interest from the day as mentioned in s.4 – The amount become due as soon as liability to pay arises – s.6 also uses the word “amount due from buyer” – Thus the fact that last payment was made on 5.3.1994 cannot be treated as period for beginning of the limitation and on that ground it cannot be held that suit was within time – Thus, benefit of s.14 cannot be claimed by the plaintiff in the facts of the instant case – Suit filed by the plaintiff was clearly barred by time. Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993 – Suit for recovery of only interest when admittedly entire principal amount was paid prior to filing of the suit – Maintainability of – Held: Maintainable – s.6 of the 1993 Act provides that “the amount due from the buyer, together with amount of interest calculated in accordance with provision of ss.4 and 5 shall be recoverable” – s.6 uses the expression “together with the amount of interest with the amount due from the buyer” – The interpretation that proceeding for recovery of interest can be undertaken only when any amount is due, if accepted then buyer will very easily get away from payment of interest only after making payment of Principal amount – This interpretation shall defeat very purposes of 1993 Act – It is well settled that provisions of Act has to be interpreted in the manner so as to advance the object of the Act – Interpretation of statutes. Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993 – Whether the High Court while considering the review petition even after expressing that Act, 1993 is not applicable could have allowed 9% interest to the plaintiff for the period of delayed payment– Held: Even if Act 1993 is not applicable, the Court can very well exercise its jurisdiction to award interest – High Court did not commit any error in awarding 9% interest to plaintiff – Review. Appeal – Maintainability of – Review – Held: When liberty to file review was obtained on a ground, the review judgement can be questioned on the ground on which the review was permitted – In other words, the ground on which the appellant can challenge the review judgement can be the ground on which liberty was obtained to file review.
Judge	Hon'ble Mr. Justice Ashok Bhushan
Neutral Citation	2019 INSC 81
Petitioner	M/s. Shanti Conductors (p) Ltd. & Anr.
Respondent	Assam State Electricity Board & Ors.
SCR	[2019] 1 S.C.R. 489
Judgement Date	2019-01-23
Case Number	8442

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