Ashok Bhushan, J. - (1.) These appeals have been filed questioning judgment of Gauhati High Court by which judgment Regular First Appeal filed by the Assam State Electricity Board has been allowed setting aside the judgment and decree passed by trial court in favour of appellants in original suit proceedings. It shall be sufficient to notice the pleadings in C.A. Nos. 8442-8443 of 2016 for deciding the common questions of law involved in all these appeals. The facts and pleadings in other appeals shall also be briefly noticed. C.A.Nos.8442-8443 of 2016 (M/s. Shanti Conductors (P) Ltd. & Anr. vs. Assam State Electricity Board & Ors.)
(2.) The appellant is a Private Limited Company which has been registered as a Small Scale Industrial Unit for manufacturing electrical conductors and/or wires at Kokrajhar, Assam. On 31.03.1992, the respondent-Assam State Electricity Board placed an order for supply of Aluminium Electrical Conductors from the appellants-M/s Shanti Conductors Pvt. Ltd. for a total consideration of Rs. 1.22 crores. The supplies were to be made between June and December, 1992. On 13.05.1992, another order was placed by the Electricity Board to M/s Shanti Conductors for the supply of various types of conductors for a total consideration of Rs. 32.49 lacs. The supplies of the aforesaid goods were to be made between January and February, 1993. On 23.09.1992, the President of India promulgated an ordinance, namely, the Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Ordinance, 1992. Subsequently, on 02.04.1993, the Interest on Delayed Payment to Small Scale and Ancillary Industrial Undertakings Act, 1993 (in short the "Act") was enacted and it was deemed to have come into force with effect from 23.09.1992. Meanwhile, the supply of equipments under the aforesaid purchase orders was completed by M/s Shanti Conductors on 04.10.1993. On 05.03.1994, the entire payment of Rs. 2.15 crores against the aforesaid supply orders was received by M/s Shanti Conductors.
(3.) On 10.01.1997, M/s. Shanti Conductors filed a suit for recovery of Rs.53.68 lakhs claiming interest on delayed payments. The Assam Electricity Board (hereinafter referred to as the "Board") filed its written statement raising the plea of limitation and contending that the Act is not applicable to the case of the appellant as the contract was concluded prior to enactment of Act, 1993. The trial court decreed the suit on 02.02.2000 for recovery of the amount of Rs.51,60,507.42/- with compound interest at the rate of 23.75% p.a. The Board filed the Regular First Appeal No.66 of 2000 before the High Court of Gauhati. The Division Bench of the High court while hearing the RFA being of the view that certain important issues arise for consideration, referred the matter to the Full Bench. The Full Bench framed following questions of law: "i) Whether the suit for recovery of mere interest under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 is maintainable? ii) Whether in the present case the suit for recovery of Interest under the Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 would not be maintainable as the contract for supply of goods between the parties was entered into prior to enforcement of the Act, i.e. on 23.09.1992? iii) Whether the suit for recovery of interest under the Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 would not be maintainable if no reservation is made by the supplier retaining to it the right to recovery interest under the Act when the payment(s) of the principal sum is/are accepted, though these may be made beyond the prescribed period?";