M/S. SHANTI CONDUCTORS (P) LTD. & ANR. versus ASSAM STATE ELECTRICITY BOARD & ORS.

Citation: [2019] 1 S.C.R. 489 · Decided: 23-01-2019 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Dismissed

Cited by 2 judgment(s) · cites 5 · see the full citation network in Lexace

Judgment (excerpt)

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489
M/S. SHANTI CONDUCTORS (P) LTD. & ANR.
v.
ASSAM STATE ELECTRICITY BOARD & ORS.
(Civil Appeal Nos. 8442-8443 of  2016)
JANUARY 23, 2019
[A. K. SIKRI, ASHOK BHUSHAN AND
S. ABDUL NAZEER, JJ.]
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
[2019] 1 S.C.R. 489
489
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490
SUPREME COURT REPORTS
[2019] 1 S.C.R.
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

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