SNEHADEEP STRUCTURES PRIVATE LIMITED Vs. MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED

JUDGEMENT

(1.) This is an appeal against the order of a learned single Judge of this Court dismissing the appellant s petition under section 34 of the Arbitration and Conciliation Act, 1996 against the interim award dated 16.6.2005 and the final award dated 9.8.2005 passed by the Arbitrator. The Arbitrator has denied the appellant s claim for interest based on the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993, hereinafter referred to as the "Interest Act".

(2.) The appellant is a private limited company and is registered as a small scale industry. The respondent is a company wholly owned by the Government of Maharashtra incorporated, inter alia, with the object of promoting small scale industries. In the usual course of business, the respondent was awarded a tender by Maharashtra State Electricity Board, for short "MSEB". MSEB placed three Work Orders upon the respondent as follows:-

(3.) Both the contracts between MSEB and the respondent and the respondent and the appellant are on a principal to principal basis. According to the appellant, the respondent delayed payment in terms of the Interest Act, though payment was made by the respondent soon after receipt of payment from MSEB, and is, therefore, liable to claim interest under section 3 of that Act which reads as follows:-