9911796707
TMI Blog1991 (8) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal. Maruti Ltd. (in liquidation) filed a petition suit under section 446, read with sections 456 and 468, of the Companies Act, 1956, for recovery of Rs. 84,927.96; the principal amount claimed was Rs. 61,542 and interest at the rate of 12 per cent. per annum with effect from February 15, 1977, till the date of the institution of the suit Rs. 23,385.96. The plaintiffs agreed to perform the job of bus body fabrication for the appellants. A running account was opened by the company wherein entries were made from time to time of the amounts due on account of the work done and the amounts received. The last entry of payment was made on February 15, 1977, relating to payment of Rs. 24,583.76. As per the account, a sum of Rs. 61,542 was due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No arguments were addressed on issues Nos. 2, 5 and 6. The same were answered against the appellants. Under issue No. 3, it was held that the company was entitled to 15 per cent. per annum interest on the admitted amount from the date of the petition till realisation. We have heard counsel for the parties. Learned counsel for the appellants has argued under issue No. 1 that the appellants were entitled to deduct a sum of Rs. 7,100 with interest on account of late delivery of the fabricated bus bodies by the company and that clause 5( b )( ii ) of the agreement entered into between the parties was not penal. There is no force in this contention. Such a clause imposing a penalty of Rs. 100 per day beyond 90 days for late delivery of fabri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be adjusted in the present proceedings. As and when the Income-tax Department moves the company judge for recovery of taxes against Maruti Limited (in liquidation) proper orders could be passed but, in the present proceedings, the appellants could not withhold the amounts due to the company on that account, more so, when the appellants have not met the liability of the company by making any payment to the Income-tax Department. Finding of the learned single judge on issue No. 2 is, therefore, affirmed. Learned counsel for the appellants, while addressing arguments on issue No. 3, has argued that since in the petition filed by the company, interest was claimed at the rate of 12 per cent. per annum on the amount due as well as future in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the suit (with further interest at such rate not exceeding six per cent. per annum as the court deems reasonable on such principal sum), from the date of the decree to the date of payment or to such earlier date as the court thinks fit : Provided that where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six per cent. per annum, but shall not exceed the contractual rate of interest or where there is no contractual rate, the rate at which moneys are lent or advanced by nationalised banks in relation to commercial transactions." Section 34(1), as reproduced above, is in two parts. The first part relates to the grant of interest prior to the instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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