Bombay High Court
National Textile Corporation Ltd vs Elixir Engineering Pvt. Ltd. And Anr on 15 March, 2021
Author: K.R.Shriram
Bench: K.R.Shriram
Digitally
1/4 10.carbp-303-18.doc
Meera signed by
Meera M.
Jadhav
M. Date:
2021.03.16
Jadhav 17:48:45
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
+0530
ORDINARY ORIGINAL CIVIL JURISDICTION
COMMERCIAL ARBITRATION PETITION NO.303 OF 2018
WITH
COMMERCIAL NOTICE OF MOTION NO.1712 OF 2018
WITH
COMMERCIAL NOTICE OF MOTION NO.1714 OF 2018
IN
COMMERCIAL ARBITRATION PETITION NO.326 OF 2018
National Textile Corporation Ltd ....Petitioner
V/s.
Elixir Engineering Pvt Ltd. ....Respondent
Ms. Swapnila Rane for petitioner in CARBP/303/2018.
Mr. Anjani Kumar Singh for petitioner in CARBP/326/2018.
Mr. Sajid Shamim a/w Mr. Murtuza Slatewala i/b S. Shamim and Co. for
respondent no. 1.
Mr. Himanshu B. Takke, AGP for respondent no. 2.
CORAM : K.R.SHRIRAM, J.
DATED : 15th MARCH 2021 P.C. :
1 Paragraph nos. 3 and 4 of order dated 7th January 2020 read as under:
"3. Learned Counsel for the petitioner submits that petitioner has deposited Rs.42,32,374/- which is 75% of the amount of Rs.56,43,165/-.
4. On the other hand, learned counsel for respondent no.1 submits that petitioner is required to deposit 75% of the awarded amount which includes principal as well as interest. According to him, interest being at the rate of 8.5% X 3, 75% of the awarded amount if Rs.1,06,40,278/-. Therefore, petitioner is required to pay balance amount of Rs.64,07,904/- so as to comply with the statutory requirement of Section 19."
2 Ms Rane is greatly embarrassed to seek further time to take instructions because petitioner is a Government of India organization. Ms Meera Jadhav 2/4 10.carbp-303-18.doc Rane, as an officer of the court, candidly states that she addressed a communication on 14th January 2020 to petitioner for instructions and though 14 months have passed petitioner has not reverted with instructions. Unfortunately that letter was two months before COVID pandemic was even discussed and almost for 9 months country has been working as if COVID cannot be an impediment for the progress of this nation. Therefore, there can be no reason for petitioner not to revert with instructions except indolence.
3 The fact is on 5th August 2019 respondent tendered its calculations, which was taken on record and marked "X" for identification. The same, for ease of reference, is scanned and reproduced below:
Meera Jadhav 3/4 10.carbp-303-18.doc
4 In the said calculation the interest mentioned is 8.25% X 3 because under Section 16 of the MSME Act, the interest payable will be compound interest with monthly rest to the supplier at 3 times of the bank rate notified by RBI. According to this statement, it is respondent's case that the rate of interest notified was 8.25% on that date. On 5th August 2019, when the order was passed, petitioner's counsel sought time to respond to the calculations and assured that before the next date he will keep the calculation ready and serve copy on the other side. The matter was stood over to 19th August 2019. The matter then appeared on 30 th August 2019 when none appeared for petitioner and it was stood over to 19 th September 2019. On 3rd October 2019 the matter was stood over to 17 th October 2019. On 22nd November 2019 the matter was stood over to 19 th December 2019. When the matter was heard on 7th January 2020, still petitioner had not given its calculations. Even today Ms Rane in fairness states no calculations has been given. Therefore, for the moment, the court has to accept that the calculation given by Mr. Shamim and taken on record on 5 th August 2019, is correct. It is open to petitioner, at the hearing of the petition, to point out that what respondent has filed was false statement. For the moment, no further time can be granted to petitioner to give its calculations. 5 Therefore, petitioner to deposit 75% of the amount awarded with interest calculated as per the statement reproduced above upto today, i.e., 15th March 2021 and this differential amount shall be deposited within two Meera Jadhav 4/4 10.carbp-303-18.doc weeks from today, failing which the petition will stand dismissed without further reference to the court. If amount is so deposited, the petition then be listed for admission on 5th April 2021.
6 Copy of this order be also forwarded to Secretary Ministry of Textiles in New Delhi, for information and necessary action.
(K.R. SHRIRAM, J.) Meera Jadhav