RAMPUR FERTILISER LTD Vs. VIGYAN CHEMICALS INDUSTRIES

JUDGEMENT

(1.) Leave granted.

(2.) Discord in this appeal lies in a very narrow compass. The issue that arises for our consideration is with regard to the nature of interest that the respondent is entitled to in respect of the amount for which he had laid claim and in respect of which a decree was passed in its favour.

(3.) The present respondent filed a suit in the Court of Munsif, Dehradun on 31.10.1991 for recovery of Rs. 15,027.75 along with interest at the rate of 24% per annum and at 2% per month compounded with monthly rest from 23.9.1992 till actual date of recovery. According to the respondent- plaintiff it used to Suppl ly hydrated lime to the appellant-defendant but the defendant did not pay the bills amounted to Rs. 10,593.75. Consequently, the aforesaid suit was filed claiming the amount of Rs. 10,593.73 along with interest at the rate of 18% per annum till the date of suit and cost of legal notices. However, during the pendency of the suit, the plaint was amended after coming into force of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (hereinafter referred to as the Act). The Act came into force with effect from 23.9.1992 whereunder if the buyer fails to make the payment on or before the agreed date or where there is no agreement before the appointed date the Suppl lier becomes entitled to interest at such rate which is 5%, point above the floor rate for comparable lending with monthly rest.