9911796707
TMI Blog2001 (7) TMI 1290X X X X Extracts X X X X X X X X Extracts X X X X ..... l gas from the applicant for the purpose of the industries run by them. It is not in dispute that there were written contracts executed between the applicant on the one hand and the various companies, namely, the respondents on the other. The agreements, in question, have stipulated the price payable and also contained terms inter alia to the effect as to when payment would be made and, in the event of failure to make the payment, the rate of interest which would be paid. This was provided in clauses similar to Clause 5.01 read with Clause 5.02 which reads as follows : 5.01. The SELLER shall issue and send to the BUYER invoices covering the total quantity of GAS delivered hereunder by the SELLER during each month for payment. The BUYER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termined by the applicant. Pursuant to a certificate of fitness having been granted, appeals were filed in this Court. The interim orders of the High Court continued to remain in operation and the respondents received the gas for which it paid interim price of ₹ 1000.00 per 1000M3. ( 3. ) BY judgment dated 4/05/1990 reported as 1990 Suppl SCC 397 : (AIR 1990 SC 1851), this Court upheld the prices fixed by the applicant and allowed the appeals filed by O.N.G.C. During the pendency of these appeals, on 15/04/1987, an interim order was passed which was similar in terms to the one which had been passed by the High Court, namely, that the supply of gas to the respondents shall not be discontinued and they would be charged at the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of this Court's aforesaid order of 6/04/1993. It is threafter that the present applications have been filed claiming interest on the balance amount of principal which was paid as a consequence of this Court's judgment dated 4/05/1990. Mr. B. Sen, the learned senior counsel appearing for the O.N.G.C., submits that the amount of interest which is payable should be calculated on the basis of the terms and aforesaid clause 5.02. He contends that this was the term which was agreed to between the parties and the respondents knew about by the same. In the alternative, it is submitted, that on the principle of restitution, inasmuch as the respondents had not got in advantage by order of the Court of not paying the amount demanded by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dispute, the rest of the terms of the agreements which had been entered into between the parties were impliedly continued. It is for this reason that in the order dated 30/03/1979 the expression used is on the same terms as at present . IN a sense, by an order of the Court the contracts continued or were renewed. Even if this be not so, there can be little doubt that on the principle of restitution the O.N.G.C. is entitled to be compensated. It is now well-settled by series of decisions of this Court that where as a result of interim orders of this Court, payment is not made but subsequently after the case is disposed of money is required to be paid then the recipient would be entitled to charge interest by way of restitution. For this M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar this Court passing any order in respect of payment of reasonable interest over the said amount. From the aforesaid decisions, it is clear that even if in the main judgment on 4/05/1990, no direction was given with regard to the payment of interest, the O.N.G.C. cannot be deprived of the right to claim restitution. The said decision upheld the price which was charged by the O.N.G.C. and did not give any specific direction requiring payment of the principal amount or the interest to be paid. Merely because this was not done, does not mean that the right of O.N.G.C. to get the money due to it had come to an end. The clear implication of the disposal of the appeals would be that the interim orders which had prohibited the O.N.G.C. from r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from today undertakings are furnished by the Managing Directors of the respondent-Companies that the amount of interest claimed by the O. N. G. C. would be paid in instalments, the said industries would be entitled to pay interest in 60 monthly instalments. The instalments would commence one month after the undertaking is so furnished. In such an event there will be no further interest on the amount payable, but in the case of any two defaults the whole amount due would become immediately payable. The payments should be made by the 10th day of every calendar month. If no such undertaking is given within a period of two months from today. O. N. G. C. would be entitled to recover the entire amount due and payable as determined by this order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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