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

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

Split opinion: V. Gopala Gowda, J. holds Act is retroactive and governs supplies made after 23.9.1992 irrespective of contract date; Arun Mishra, J. holds Act is prospective only, applicable to supply orders placed after commencement, and existing agreements/supply orders are not affected. Matter referred to larger Bench due to divergent views.

Parties
Appellant: MIS Shanti Conductors (P) Ltd.; Respondent: Assam State Electricity Board; Respondent: ORS.
Jurisdiction
India
Judgment Date
31 August 2016
Procedural Posture
Civil Appeal / Decision on Appeal, Split Judgment; Referred to Larger Bench
Outcome
Split decision; appeals allowed by V. Gopala Gowda, J.; appeals dismissed by Arun Mishra, J.; matter referred to larger Bench.
Legal Topics
Interest on Delayed Payments, Retrospective Application of Statutes, Limitation, Small Scale Industries, Contractual Liability
Commercial Law Statutory Interpretation Interest on Delayed Payments Retrospective Application of Statutes Limitation Small Scale Industries Contractual Liability

Case Brief

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Parties

MIS Shanti Conductors (P) Ltd.

Appellant

Assam State Electricity Board

Respondent

ORS.

Respondent

Procedural Posture

Civil Appeal / Decision on Appeal, Split Judgment; Referred to Larger Bench

Legal Issues

  1. 1 Whether the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 applies retroactively to supply orders placed before its commencement
  2. 2 Whether claims for interest on delayed payments are maintainable under 1993 Act for contracts before 23.9.1992
  3. 3 Whether the decisions in prior Supreme Court cases were sub silentio or per incuriam

Ratio Decidendi

Split opinion: V. Gopala Gowda, J. holds Act is retroactive and governs supplies made after 23.9.1992 irrespective of contract date; Arun Mishra, J. holds Act is prospective only, applicable to supply orders placed after commencement, and existing agreements/supply orders are not affected. Matter referred to larger Bench due to divergent views.

Court Disposition

Split decision; appeals allowed by V. Gopala Gowda, J.; appeals dismissed by Arun Mishra, J.; matter referred to larger Bench.

Orders

  • Respondents to refund Rs.38,70,000 to appellants with 9% interest p.a. within stipulated period as per V. Gopala Gowda, J.
  • Appeals dismissed with no costs as per Arun Mishra, J.