HARYANA STATE Vs. MARUTI LTD

JUDGEMENT

(1.) THE company judge, on August 23, 1985, passed a decree for the recovery of Rs. 61,542 with 15 per cent. per annum interest from the date of the petition till realisation in favour of Maruti Limited (in liquidation) against the State Transport Controller, Haryana, and the General Manager, Haryana Roadways. Feeling aggrieved, the defendants (Haryana State and another) have come up in appeal.

(2.) MARUTI Ltd. (in liquidation) filed a petition suit under Section 446, read with sections 456 and 468, of the Companies Act, 1956, for recovery of Rs. 84,927. 96 ; the principal amount claimed was Rs. 61,542 and interest at the rate of 12 per cent. per annum with effect from February 15, 1977, till the date of the institution of the suit Rs. 23,385. 96. The plaintiffs agreed to perform the job of bus body fabrication for the appellants. A running account was opened by the company wherein entries were made from time to time of the amounts due on account of the work done and the amounts received. The last entry of payment was made on February 15, 1977, relating to payment of Rs. 24,583. 76. As per the account, a sum of Rs. 61,542 was due to the company from the present appellants for the recovery of which the suit was filed. The appellants contested the claim. It was admitted that a sum of Rs. 54,442 was still due to the company. A sum of Rs. 7,100 was deducted which the appellants could deduct under the agreement for late delivery of some of the bus-bodies fabricated by the company. The aforesaid amount which was admitted to be due was detained under the directions of the Income-tax Department as certain amounts towards taxation were due to the Income-tax Department from the company aforesaid. On the pleadings aforesaid, the following issues were framed :- (1) Whether the respondents are entitled to recover "an amount of Rs. 7,100 with interest from the petitioner ? (2) Are the petitioners entitled to stop the payment of Rs. 54,442 at the instance of the Income-tax Department ? (3) Are the respondents entitled to recover interest on the amount claimed in the petition. If so, at what rate ? (4) Is the petition not maintainable in view of the arbitration clause existing in the agreement ? (5) Is the petition barred by limitation ? (6) Relief.

(3.) UNDER issue No. 1, it was held that the appellants were not entitled to deduct any amount on account of late delivery of the fabricated vehicles. The relevant clause in the agreement which envisaged imposition of penalty, of Rs. 100 per day for the late delivery of the fabricated vehicles beyond 90 days was illegal and not enforceable. It amounted to a penal clause. No arguments were addressed on issues Nos. 2, 5 and 6. The same were answered against the appellants. Under issue No. 3, it was held that the company was entitled to 15 per cent. per annum interest on the admitted amount from the date of the petition till realisation.