Transmission Corporation of Andhra Pradesh Limited Vs Sri Gowri Shankar Cable Industries (Telangana High Court)
Telangana High Court held that law of limitation [Limitation Act, 1963] applies even for claims under the Interest on Delayed Payment to the Small Scale and Ancillary Industrial Undertakings Act, 1993. Accordingly, instant appeal stands partly allowed.
Facts- The appellant had made certain purchases of AAA and ACSR Conductors from respondent No.1 somewhere in the year 1996. The entire demand as raised by the appellant was duly supplied by respondent No.1. However, after the supply was made, the appellant failed in honoring the payment schedule and there was a considerable delay in making the payments and, in addition, there were some bills also which were outstanding. The respondent No.1, thereafter, filed a claim petition before the Facilitation Council for an amount of Rs.32,63,673/- along with interest and also directed the appellant to pay the balance of outstanding amount. The Facilitation Council after hearing both the parties, vide its award dated 16.11.2002, allowed the claim petition to the extent of directing the appellant to pay an amount of Rs.24,14,382/- and also awarded 10% simple interest post award on the said amount.
This award of the Facilitation Council was subjected to challenge by the appellant u/s. 34 of the A&C Act before the learned XIV Addl. Chief Judge. The learned XIV Addl. Chief Judge dismissed the said petition, leading to filing of the instant appeal u/s. 37 of the A&C Act.
