Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993

The Supreme Court examined whether the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (the 1993 Act) applies retrospectively to supply orders placed before its commencement on 23‑09‑1992. The Court held that the Act is prospective, its liability arising only after the buyer …

M/s Coromandal Sacks supplied HDPE bags to Fertilizer Corporation of India Ltd (FCIL) and sued for recovery of unpaid amounts, alleging price differences, liquidated damages, penalties and loss of unsold bags. FCIL contended it was a sick industrial company under the Sick Industrial Companies (Special Provisions) Act, …

The appellants, M/s Brahmaputra Concrete Pipe Industries, challenged a Registrar's order refusing to register their curative petitions, arguing that the Registry lacked authority to dismiss such petitions on the ground that the preceding review petition was not dismissed by circulation. The review petition had been dis…

Secur Industries Ltd filed a claim petition under Section 6 of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993, referring the dispute to the Uttar Pradesh Industry Facilitation Council. The respondent filed a suit in a civil court seeking a declaration that the petition w…

Lifecare Innovations Pvt. Ltd., a micro‑enterprise manufacturing a specialised liposomal drug, was repeatedly disqualified from government tenders because the Notice Inviting Tender (NIT) imposed mandatory minimum turnover requirements that it could not meet. The petitioners argued that such clauses violated Articles 1…

M/s. Bhandari Udyog Ltd., a cotton ginning business in Raichur, Karnataka, sold 750 bales of cotton to Respondent No.2, a spinning mill in Latur, Maharashtra. A dispute over the unpaid balance was referred to arbitration under the Arbitration and Conciliation Act, 1996, and an award was made directing payment. Responde…

M/s Shanti Conductors (P) Ltd. filed a money suit against Assam State Electricity Board for interest on delayed payments. The Supreme Court had earlier held the suit barred by limitation, rejecting the plaintiff’s claim of benefit under Section 19 of the Limitation Act, 1963 and Section 14, and also held that the 1993 …

Anita Merchant booked three flats from Suneja Towers Private Limited, paid 60% of the price, but the builder failed to deliver possession even after the agreed period, leading her to file consumer complaints. The District Forum dismissed the complaints, but the State Consumer Commission reversed the decision, ordering …

MIS. Rampur Fertiliser Ltd. sued M/s. Vigyan Chemicals Industries for unpaid bills and claimed interest at 18% per annum. During the pendency of the suit, the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 came into force (23‑Sept‑1992) and the plaintiff amended the plaint t…

Vijay Industries, a small‑scale supplier of castor oil, sued Natl Technologies for non‑payment of invoices and for interest on delayed payments, filing a winding‑up petition under Sections 433(e), 433(f) and 434 of the Companies Act, 1956. The respondent argued that interest was not a debt because there was no explicit…

Jay Engineering Works Ltd., a sick industrial company, was declared sick under the Sick Industrial Companies (Special Provisions) Act, 1985 and a rehabilitation scheme was approved in 2003. Respondent No.2 (Diamond Wire Industries) claimed interest on delayed payments under the Interest on Delayed Payments to Small Sca…

The Supreme Court considered two appeals by suppliers of aluminium conductors against the Assam State Electricity Board concerning claims for interest on delayed payments under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. The Court held that a suit seeking only intere…

The Odisha State Financial Corporation (OSFC) financed a bleaching powder unit that defaulted, leading to its possession of the unit and subsequent litigation. Respondent Vigyan Chemical Industries sued the defaulting borrower and later impleaded OSFC, claiming repayment with interest calculated under the repealed Inte…

Snehadeep Structures Pvt. Ltd. (SSPL) entered into a supply/purchase order with Maharashtra Small Scale Industries Development Corporation Ltd. (MSSIDCL) on 30 March 1995 for the delivery of goods to the Maharashtra State Electricity Board. The contract stipulated that MSSIDCL would pay SSPL only after the goods were a…

The State of Kerala entered into a contract with Mis Arya Refrigeration & A/C Co. for supplying and erecting a cold‑storage plant, which could not be installed because the State failed to construct the requisite building. The dispute was referred to arbitration; the arbitrator awarded a sum to the claimant. The State c…