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Issues:
Dispute over payment of interest on delayed lease instalments as per clause 4 of the agreement dated 11/12-11-1998. Claim for interest by the petitioner on defaults in payment by BHEL. Bar on some interest claims due to limitation. Interpretation of clause 4 regarding interest calculation and setting off. Analysis: The judgment delves into a dispute regarding the payment of interest on delayed lease instalments as per a specific clause in the agreement dated 11/12-11-1998. The clause mandates the respondent to pay interest at 2 per cent per month to the petitioner for any default or delay in payment by BHEL beyond 30 days of the due date. The petitioner claims interest as per this clause, supported by a detailed calculation chart provided by Mr. M. V. Chandran. The respondent argues that some interest claims are time-barred, citing examples like the delay in filing the winding-up petition after more than five years from the cause of action arising. The judgment emphasizes the importance of determining the date on which the cause of action arose. It clarifies that each default in payment of instalment constitutes a separate cause of action, akin to monthly rent payments. The court refers to precedents to establish that the limitation period for such claims starts from the date each instalment becomes due. Therefore, the petitioner should have filed claims within three years of each default, with interest payable for the period of default until the instalment was paid. The judgment also highlights the need for separate calculation of interest for each default, without provision for setting off interest in case of early payment. Regarding the respondent's partial payment of interest mentioned in a letter, the court finds the letter insufficient to support the petitioner's claim. The letter does not explicitly state that the payment was for interest under clause 4, and there is no other evidence provided. Consequently, the court directs both parties to recalculate interest payable under clause 4 from the date of the winding-up petition filing, using simple interest calculation. The parties are given four weeks to submit the recalculated interest charts, with a subsequent hearing scheduled for further proceedings. In conclusion, the judgment clarifies the principles governing the calculation and limitation of interest claims on delayed lease instalments as per the agreement's clause. It underscores the need for precise calculations, adherence to contractual terms, and timely pursuit of claims within the limitation period to ensure legal validity and enforceability.
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