SOUMYA MINING LIMITED Vs. VOLTAS LIMITED

JUDGEMENT

(1.) In 2013, the respondent company was executing a project at Meghalaya. On 1st July, 2013 the parties entered into a contract under which the respondent company was to supply spare parts to and provide service to a mobile crusher being utilised by the petitioner at the project site. Seven purchase orders were placed by the respondent company. Between 9th April, 2013 and 13th November, 2013 from time to time invoices were raised by the petitioner. Insignificant payments were made by the company.

(2.) On 30th March, 2016 the petitioner issued a statutory notice to the respondent company claiming an amount of Rs. 21,29,251 inclusive of interest calculated @22% per annum from the dates of the respective invoices till 15th March, 2016. The interest component was Rs. 7,38,765. By the notice the respondent was called upon to furnish the TDS certificate and to furnish the C-form or pay the differential tax of Rs. 46,454, differential duty amounting to Rs. 20,600 and interest thereon. The aggregate claim amounted to Rs. 21,75,705/-. This notice was replied to by the letter of a firm of Advocate RDA Legal dated 19th April, 2016. It was said that the agreement had an arbitration clause and that the petitioner should have resorted to arbitration. In paragraph 7C of the reply, it was admitted that the respondent had paid Rs. 1,57,795/-.

(3.) Mr. Banerjee appearing for the petitioner considers this statement as an admission of part payment made by the company.