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M/s Shanti Conductors (P) Ltd. & Anr. v. Assam State Electricity Board & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 8442-8443 of 2016)Decided 31 Aug 2016
Civil Appeal Nos. 8442-8443 of 2016
Justice V. Gopala Gowda · Justice Arun Mishra

Background

This is a split decision, not a final judgment. The appeals arose from a long-running suit, filed in 1997, over interest on delayed payment for the supply of electrical conductors to the Assam State Electricity Board. The question was whether the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 applied, including whether it operates prospectively or retrospectively.

Decision Breakdown

This is a split decision, not a final judgment. On 31 August 2016, Justice V. Gopala Gowda held that the suit was within limitation and would have allowed the appeals, directing a refund with interest. Justice Arun Mishra disagreed and held that the appeals had no merit and should be dismissed. Because the two judges disagreed on all the questions framed, the appeals were placed before the Chief Justice for appropriate orders, and the intervention applications were kept pending for a larger Bench.

Lesson Learnt

There is no final ruling yet on whether the 1993 Act applied or whether the suppliers are entitled to delayed-payment interest. A larger Bench will decide.

Official source (sci.gov.in)View Judgment (PDF)

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