M/S PURBANCHAL CABLES & CONDUCTORS PVT. LTD versus ASSAM STATE ELECTRICITY BOARD & ANOTHER

M/S PURBANCHAL CABLES & CONDUCTORS PVT. LTD versus ASSAM STATE ELECTRICITY BOARD & ANOTHER

The Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 operates prospectively, and suppliers may sue only for a higher rate of interest on delayed payments for supply contracts executed after the date of commencement, i.e. 23.9.1992; contracts executed prior are not covered. Judicial discipline and stare decisis require following previous Supreme Court decisions, and no case is made for reconsideration. The issue of novation, raised for the first time, could not be entertained, being a mixed question of law and fact.

Parties
Appellant: M/S Purbanchal Cables & Conductors Pvt. Ltd.; Respondent: Assam State Electricity Board; Respondent: Another
Jurisdiction
India
Judgment Date
10 July 2012
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
appeals dismissed
Legal Topics
Interest on Delayed Payments, Applicability of Statute, Prospective Operation of Law, Judicial Discipline, Novation of Contract
Commercial Law Contract Law Statutory Interpretation Interest on Delayed Payments Applicability of Statute Prospective Operation of Law Judicial Discipline Novation of Contract

Case Brief

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Parties

M/S Purbanchal Cables & Conductors Pvt. Ltd.

Appellant

Assam State Electricity Board

Respondent

Another

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether a suit for interest alone is maintainable under the Interest on Delayed Payments Act, 1993
  2. 2 Whether the Act applies to supply contracts executed prior to its commencement but fulfilled after commencement

Ratio Decidendi

The Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 operates prospectively, and suppliers may sue only for a higher rate of interest on delayed payments for supply contracts executed after the date of commencement, i.e. 23.9.1992; contracts executed prior are not covered. Judicial discipline and stare decisis require following previous Supreme Court decisions, and no case is made for reconsideration. The issue of novation, raised for the first time, could not be entertained, being a mixed question of law and fact.

Court Disposition

appeals dismissed

Orders

  • No order as to costs