Interest on Delayed Payments to Small Scale and Ancillary ...

Statutory Provisions Prevail Over Contracts for Timely Payments to Small-Scale Industries; Appeal Dismissed.

May 15, 2024

Case Laws Companies Law SC

Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings - The Supreme Court clarified that statutory provisions prevailed over contractual clauses, ensuring timely payments to protect small-scale industries. It ruled that the proviso to Section 3 applied prospectively, maintaining the validity of pre-existing contractual agreements. Detailed examination of facts was mandated to determine interest liability accurately. Additionally, the treatment of compounded interest under Section 5 required further consideration for proper adjudication. In conclusion, the Court dismissed the appeal, emphasizing adherence to statutory provisions and equitable resolution of disputes.

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Interest on Delayed Payments to Small Scale and Ancillary ...

Statutory Provisions Prevail Over Contracts for Timely Payments to Small-Scale Industries; Appeal Dismissed.

May 15, 2024

Case Laws Companies Law SC

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