MAGMA LEASING LTD. Vs. HCL INFOSYSTEMS LTD.

JUDGEMENT

(1.) I have heard learned Counsel for the parties. My attention has been drawn to the agreement dated November 11/12, 1998. Clause 4 of the said agreement is relevant and is reproduced below: HCL hereby ensures payment of lease rentals as due and payable by BHEL to be paid to MLL directly which rental is due and payable every quarter and is due to commence from the date of installation of the equipments at BHEL's site payable within 30 days of the end of the particular quarter during which the equipment is installed at BHEL and MLL will be treated as 'lessor' for the purpose of the same. It is further clarified that HCL will pay interest for the delay in obtaining receipt of lease rentals from BHEL pursuant to the performance under the lease agreement at 2 per cent, per month after 30 days from the respective due dates until payment thereof and further HCL will also make good to MLL the short -fall, if any, in the respective lease rental due and payable together with interest at 2 per cent, per month till the date of payment.

(2.) IT is stated by learned Counsel for the parties that the other agreements with an identical clause were executed between the petitioner and the respondent -company.

(3.) THE basic dispute in the present petition pertains to payment of interest by the respondent -company to the petitioner on the delayed payment of lease Installment by BHEL as per clause 4 of the agreement dated November Will, 1998. The said clause, as quoted above, states that the respondent shall pay interest at 2 per cent, per month to the petitioner for any default/delay in payment of Installment by BHEL beyond 30 days of the due date. The respondent -company had agreed to pay interest at 2 per cent, per month from the date the Installment had become due plus 30 days till the date of payment. There is no dispute between the parties in this regard.