SNEHADEEP STRUCTURES PVT. LIMITED versus MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LTD.

SNEHADEEP STRUCTURES PVT. LIMITED versus MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LTD.

The Supreme Court declined to interfere with the High Court's order setting aside the arbitral award because the supply/purchase order dated 30.03.1995 made MSSIDCL the buyer vis-à-vis SSPL and fixed payment to be made only after delivery and acceptance by the consignee (MSEB) and receipt of payment by MSSIDCL; the proviso to Section 3 of the 1993 Act (effective 10.08.1998) limits any contractual payment period to 120 days from acceptance or deemed acceptance and therefore must be applied where relevant; ascertainment of the appointed date/acceptance or deemed acceptance is necessary for calculation of interest and the arbitral award had not dealt with certain issues (including...

Parties
Appellant: Snehadeep Structures Pvt. Limited; Respondent: Maharashtra Small Scale Industries Development Corporation Ltd.
Jurisdiction
India
Judgment Date
05 March 2024
Procedural Posture
Civil Appeal / Judgment on Appeal by the Supreme Court (leave Granted; Appeal Dismissed)
Outcome
Appeal dismissed
Legal Topics
Buyer, Supplier, Interest, Date of Payment, Appointed Date, Acceptance Date, Deemed Date of Acceptance, Small Scale Industries
Arbitration Statutory Interpretation Contract Law Small Scale Industries Regulation Buyer Supplier Interest Date of Payment +4 more

Case Brief

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Parties

Snehadeep Structures Pvt. Limited

Appellant

Maharashtra Small Scale Industries Development Corporation Ltd.

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal by the Supreme Court (leave Granted; Appeal Dismissed)

Legal Issues

  1. 1 Whether the High Court was justified in setting aside the arbitral award
  2. 2 Whether MSSIDCL is a 'buyer' within the meaning of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993
  3. 3 Whether the proviso to Section 3 of the 1993 Act applies to the contract dated 30.03.1995 though the proviso came into effect on 10.08.1998

Ratio Decidendi

The Supreme Court declined to interfere with the High Court's order setting aside the arbitral award because the supply/purchase order dated 30.03.1995 made MSSIDCL the buyer vis-à-vis SSPL and fixed payment to be made only after delivery and acceptance by the consignee (MSEB) and receipt of payment by MSSIDCL; the proviso to Section 3 of the 1993 Act (effective 10.08.1998) limits any contractual payment period to 120 days from acceptance or deemed acceptance and therefore must be applied where relevant; ascertainment of the appointed date/acceptance or deemed acceptance is necessary for calculation of interest and the arbitral award had not dealt with certain issues (including...

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed.
  • No order as to costs.