Allahabad High Court
M/S Deluxe Glass Industries Ferozabad & ... vs M/S Gas Authority Of India Ltd. Agra on 28 January, 2010
Bench: Amitava Lala, S.N.H. Zaidi
Court No. - 3 Case :- WRIT - C No. - 41980 of 2002 Petitioner :- M/S Deluxe Glass Industries Ferozabad & Another Respondent :- M/S Gas Authority Of India Ltd. Agra Petitioner Counsel :- P.K. Jain Respondent Counsel :- S.C.,D.P. Singh,S.K. Misra,Siddhartha Singh Hon'ble Amitava Lala,J.
Hon'ble S.N.H. Zaidi,J.
Petitioner's writ petition is against the debit notes dated 1st August, 2001, 17th September, 2002 and 1st July, 2006. Though a preliminary objection has been raised by the learned counsel appearing for the respondents that the writ petition is not maintainable on account of availability of arbitration clause to decide the issue but the petitioners have raised the grievance that no interest on penalty can be claimed by the respondents and therefore, such dispute cannot be resolved by the arbitrator. According to us, whether the respondents can claim interest at all on the penalty amount or not, is the only crux of the case herein. The petitioners contended before this Court that they have cleared of all the dues as is reflected from the letter of the respondents themselves dated 15th June, 2006, therefore, the claim is only in respect of the interest of penalty. So far as the debit note dated 1st July, 2006 is concerned, although it is purported to be interest on delayed payments but since as per the said letter dated 15th June, 2006, the petitioners have admittedly cleared of all the dues, it cannot be interest on other payments except interest on penalty. Upon being called learned counsel appearing for the respondents placed before us the relevant clauses of Gas Supply Contract (GSC) and we find from the same that there is a clause of recovery of interest on delayed payments but not on penalty amount. Having so, the claim of the respondents being interest on penalty cannot be substantiated, therefore, so far as the interest on penalty is concerned, the debit notes dated 1st August, 2001, 17th September, 2002 and 1st July, 2006 are quashed. The writ petition is disposed of, however, without any order as to cost.
Order Date :- 28.1.2010 Kst/