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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 ..... s 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. There are no good ground and reason to interfere with the conclusion in the impugned judgment passed by the Division Bench of the High Court, setting aside the arbitral award dated 30.06.2003 - appeal dismissed. - SANJIV KHANNA And DIPANKAR DATTA , JJ. For the Petitioner : Mr. Ranjit Kumar, Sr. Adv. Mr. Siddharth Bhatnagar, Sr. Adv. Ms. Tahira Kara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplier, as required under section 3, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay interest to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the date agreed upon, at one - and - half time of Prime Lending Rate charged by the State Bank of India. Explanation.- For the purposes of this section, Prime Lending Rate means the Prime Lending Rate of the State Bank of India which is available to the best borrowers of the bank. 5. Liability of buyer to pay compound interest.- Notwithstanding anything contained in any agreement between a supplier and a buyer or in any l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate issued by the Directorate of Industries of a State or Union territory and includes,- (i) the National Small Industries Corporation, being a company, registered under the Companies Act, 1956 (1 of 1956); (ii) the Small Industries Development Corporation of a State or a Union territory, by whatever name called, being a company registered under the Companies Act, 1956 (1 of 1956). 5. The proviso to Section 3, and the amendment to Section 2(f) to include the addition of National Small Industries Corporation and the Small Industries Development Corporation of a State or a Union Territory to the definition of supplier , were incorporated by Act No. 23 of 1998 with effect from 10.08.1998. 6. On a reading of Section 3 of the 1993 Act, as it st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been restricted in terms of the said proviso. In other words, if the contractual date of payment exceeds 120 days from the day of acceptance or the day of deemed acceptance, interest would be payable for the period beyond 120 days from the day of acceptance or the date of deemed acceptance. 9. When we turn to the facts of the present case, the supply/purchase order dated 30.03.1995 issued by MSSIDCL to SSPL, had stated as under: - 25. The price of the goods delivered and accepted by the consignee and when received from the consignee will be paid to the supplier by the Corporation subject to deductions of advances, if any, paid by the Corporation and the service changes [sic] and other moneys payable to the Corporation by the supplier. No a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the High Court, setting aside the arbitral award dated 30.06.2003. We would, however, record that the award having been set aside, the provisions of Section 43(4) of the Arbitration and Conciliation Act, 1996 would come into operation and would accordingly apply. 14. We clarify that MSEB need not be a party to the proceedings, if any, which may be initiated by SSPL or MSSIDCL. However, any adjudication for payment of interest under Sections 3 to 5 of 1993 Act, including the question relating to application of the proviso, would require ascertainment of the appointed date, the date of acceptance or the deemed date of acceptance. To this limited extent, ascertainment of facts with reference to the consignee MSEB, to whom the goods were suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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