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TMI Blog2024 (5) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... allak Bhagat, Adv. M/s. Udit Kishan And Associates, AOR JUDGMENT Leave granted. 2. We have heard learned Senior Advocate appearing for the appellant - Snehadeep Structures Pvt. Limited For short, "SSPL" and the Respondent - Maharashtra Small Scale Industries Development Corporation Ltd. For short, "MSSIDCL". 3. During the course of the hearing, our attention was drawn to Sections 3, 4 and 5 of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 For short, "1993 Act". For the sake of convenience, the said Sections are reproduced below: - "3. Liability of buyer to make payment.- Where any supplier supplies any goods or renders any services to any buyer, the buyer shall make payment the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re applicable, unless the context otherwise requires. The same read thus: - (b) "appointed day" means the day following immediately after the expiry of the period of thirty days from the day of acceptance or the day of deemed acceptance of any goods or any services by a buyer from a supplier; Explanation.-For the purposes of this clause,- (i) "the day of acceptance" means,- (a) the day of the actual delivery of goods or the rendering of services; or (b) where any objection is made in writing by the buyer regarding, acceptance of goods or services within thirty days from the day of the delivery, of goods or the rendering of services, the day on which such objection is removed by the supplier; (ii) "the day of deemed acceptan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) of the 1993 Act, would be the date, on which the payment is due. This is also clear from reading Section 4, which states the date from which interest is payable. As per Section 4, the buyer is liable to pay interest if he fails to pay the amount to the supplier as required by Section 3. Non-obstante part of Section 4 only deals with the stipulation in a contract whereby liability to pay interest is barred/prohibited. It does not, in any way, override the contractual clause with regard to the date of payment. In other words, in case the contract states that interest will not be payable even in the case of belated payment, then Section 4 of the Act will come into operation, overriding the negative contractual clause. 7. The effect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay SSPL only after the goods are delivered and accepted by the consignee, namely, Maharashtra State Electricity Board For short, "MSEB" and on the payment being received by MSSIDCL from the MSEB. 11. If the proviso to Section 3 applies, this contractual clause will get modified in terms of the proviso to Section 3, which has fixed the upper time limit for payment to 120 days from the day of acceptance or the day of deemed acceptance. However, the question would arise as to whether the said proviso would be applicable to the agreement in question, which was entered into between the parties on 30.03.1995, albeit the proviso was enacted and enforced with effect from 10.08.1998. 12. Even if, for the sake of argument, it is to be accepted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not deviate from the fact that MSSIDCL was the buyer under the supply/purchase order dated 30.03.1995 issued by MSSIDCL to SSPL. Equally, the G.O. 2(1)/A/93- SSI Bd. and Policy dated 05.05.1993 issued by the Ministry of Industry, Department of SSI, Agro and Rural Industries, Office of the Development Commissioner (Small Scale Industries), has an effect of treating MSSIDCL as a supplier for the purpose of claiming interest from the buyer, that is MSEB, with whom they have entered into a contract for the purpose of the 1993 Act. The liability to pay and the privity of contract in terms of the supply/purchase order dated 30.03.1995 is between MSSIDCL and SSPL. The contractual relationship, rights and obligations inter se MSSIDCL and SSPL do n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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