- (1.) The only question which arises for consideration in these applications filed by the Oil and Natural Gas Commission (for short O.N.G.C.) relates to the demand of interest from the respondents subsequent to the appeal with regard to fixation of price of natural gas having been decided by this Court.
(2.) Briefly stated the facts are that the respondents had entered agreements with the applicant whereby they had agreed to take natural gas from the applicant for the purpose of the industries run by them. It is not in dispute that there were written contracts executed between the applicant on the one hand and the various companies, agreements, in question, have stipulated the price payable and also contained terms inter alia to the effect as to when payment would be made and in the event of failure to make the payment, the rate of interest which would be paid. This was provided in clauses similar to Clause 5.01 read with Clause 5.02 which reads as follows : 5.01. The SELLER shall issue and send to the BUYER invoices covering the total quantity of GAS delivered hereunder by the SELLER during each month for payment. The BUYER shall pay in full within ten (10) days of the receipt of such invoice the amount so mentioned in such invoices. For this purpose, a month would commence at 07.00 hours of first day of a month and end at 07.00 hours of the first day of the following month. In case there is any dispute regarding the quantities of GAS supplied, the BUYER shall lodge his claims to the SELLER giving full days from the date of making the payment. 5.02. The BUYER shall pay interest on all delayed payments at the rate of half () percent higher than the rate of interest payable by the SELLER on cash credit facility from the State Bank of India from time to time. Delayed payment means any payment not received within the period in Clause 5.01 mentioned above.
(3.) The contracts came to an end on 30th March, 1979 and the applicant proposed that the contract should be renewed, but at the enhanced price of gas. The respondents thereupon filed a writ petition before the Gujarat High Court challenging the increase in the price of gas as fixed. By an interim order, the High Court directed the applicant to supply gas at the old rate of Rs. 504/- per 1000M3. Subsequently, by an order dated 29th October, 1982, the High Court increased the interim price to Rs. 1000/- per 1000M3.;