9911796707
TMI Blog2004 (2) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... after called 1993 Act ). 2. Petitioner company is a unit of M/s. Jay Engineering Industries, New Delhi. The second respondent company filed a claim petition before first respondent claiming interest on delayed payments under the 1993 Act. It is a small scale industry registered with District Industries Centre, engaged in the manufacturing of Die-Casted Fans components. The second respondent filed a claim petition under section 6 of the 1993 Act before first respondent alleging that petitioner company placed twenty eight orders from 30-6-1999 to 1-6-2001 for an amount of Rs. 32,09,388.91, that out of this an amount of Rs. 15,07,110 has been paid and an amount of Rs. 23,83,330.24 including interest of Rs. 6,81,051.33 is due as on date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r-riding effect on SICA Act. 4. The learned counsel for petitioner Sri M.S.R. Subrahmanyam contends as follows: If there are two acts passed by Parliament with overriding clauses, the general principle is that later enactment will prevail. Where later statute is general one and the earlier statute is a special enactment, the earlier statute only prevails. However, where both the enactments are special statutes in relation to matters dealt with and there is inconsistency between two enactments, the conflict has to be resolved by reference to objects and policies underlying the two enactments. The clear intentment conveyed by the language of relevant provisions of the statute must be the basis and not point of time of enactment, while res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cilitation Councils (IFCs) have been set up by States as per the provision of section 7 of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (Amended in 1998). Representations have been received by this Ministry seeking clarification on the following issues : ( i )There is no effective mechanism of execution of the Award by IFCS. Even, if any award is passed against Respondent (Large Industry), they never care to pay and as such the order of the Council lie unexecuted. ( ii )In cases where respondents are sick industrial units registered under BIFR, no suit for recovery of money can proceeded against them as per section 22 of section 32 of the Sick Industries Companies (Special Provision) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Fairgrowth Financial Services Ltd. [1997] 89 Comp. Cas. 547 (Bom.) the Special Court held as under : " Where there are two special statutes which contain non obstante clauses the later statute must prevail. This is because at the time of enactment of the later statute, the Legislature was aware of the earlier legislation and its non obstante clause. If the Legislature still confers the later enactment with a non obstante clause it means that the Legislature wanted that enactment to prevail. If the Legislature does not want the later enactment to prevail then it could and would provide in the later enactment that the provisions of the earlier enactment continue to apply . The Special Court (Trial of Offences Relating to Trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto private pockets are returned to the banks and financial institutions. The time and manner of distribution is to be decided by the Special Court only. Under section 22 of the 1985 Act, recovery proceedings can only be with the consent of the Board for Industrial and Financial Reconstruction or the appellate authority under that Act. The Legislature being aware of the provisions of section 22 under the 1985 Act still empowered only the Special Court under the 1992 Act to give directions to recover and to distribute the assets of the notified persons in the manner set down under section 11(2) of the 1992 Act . This can only mean that the Legislature wanted the provisions of section 11(2) of the 1992 Act to prevail over the provisions of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f giving preponderance to the earlier Act. It may be mentioned that 1993 Interest Payment Act by section 10 categorically lays down that provisions of the said Act have effect notwithstanding anything inconsistent therewith contained in another law for the time being in force. Indeed in Solidaire India Ltd. s case ( supra ), the Supreme Court was resolving the question whether the Special Courts Act, 1992 prevails over SICA. Following the decisions of the Supreme Court in Solidaire India Ltd. s case ( supra ), this Court holds that the impugned order of the first respondent does not suffer from any illegality or error apparent on the face of record. 8. The writ petition is misconceived and devoid of merits and it is accordingly dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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