M/S.GURUDEV RICE AND AGRO PRODUCTS PVT LIMITED Vs. THE KERALA STATE CO-OPERATIVE CONSUMERS FEDERATION LIMITED(CONSUMER FED)

JUDGEMENT

(1.) The Kerala State Co-operative Consumers Federation Limited (hereinafter referred to as 'the buyer') used to purchase rice and oil from the company by name M/s.Gurudev Rice and Agro Products Private Limited (hereinafter referred to as 'the seller'). The dispute relates to payment of interest by the buyer to the seller on the unpaid price of goods sold.

(2.) The seller instituted the case ARC No.1245/2016 under Section 69 of the Co-operative Societies Act, 1969 claiming an amount of Rs.5,74,53,565/- allegedly due from the buyer as on 31.08.2016 with interest. Pending the proceedings before the arbitrator, the buyer paid Rs.20,80,000/- on 06.09.2016 and Rs.4,87,66,913.31/- on 25.01.2017. The arbitrator, who was the Additional Registrar of the Co-operative Societies, passed an award on 15.03.2017 allowing the seller to realise an amount of Rs.66,06,651.87/- from the buyer.

(3.) The seller filed appeal before the Kerala Co- operative Tribunal challenging the award of the arbitrator denying interest on delayed payment of price of goods. The buyer filed revision petition before the Tribunal for setting aside the award. As per the common judgment dated 12.07.2017, the Tribunal dismissed the revision petition filed by the buyer but allowed the appeal filed by the seller and directed the buyer to pay interest at the rate of 18% per annum on delayed payments and also on the amount awarded by the arbitrator.