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Judgment
Hon''ble Mr. N.K. Mody, J.—Being aggrieved by the order dated 8-8-2011 passed by District Judge, Indore in Miscellaneous Arbitration Case No. 3/10 whereby application filed by respondent No. 1 was allowed and the petitioner was directed to deposit further sum of Rs. 35,39,625/-, present petition has been filed. Short facts of the case are that an award was passed against the petitioner on 2-7-10 by the respondent No. 2 whereby petitioner was directed to pay a sum of Rs. 57.48,564/- along with interest up to 29-5-10 amounting to Rs. 88,33,593/- as calculated by respondent No. 1 or to pay compound interest with monthly rests on that amount with effect from 2-10-06 three limes of the bank rate notified by the Reserve Bank of India against which an appeal was filed by the petitioner.
In the appeal an application was filed by the respondent No. 1, wherein it was prayed to direct the petitioner to deposit the interest as per Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 (which shall be referred hereinafter as ''Act''). The application was allowed and petitioner was directed to deposit further sum of Rs. 35,39,625/-, against which present petition has been filed.
Learned Counsel for the petitioner argued at length and submits that the petitioner has deposited a sum of Rs. 73,94,740/-. It is submitted that while calculating the amount holding the petitioner liable to deposit further sum of Rs. 35,39,625/-, learned Court below has not calculated the amount of interest. It is submitted that the learned Court below has taken into consideration that the figure mentioned by the respondent No. 1 as Rs. 88,33,593/- towards interest is the correct figure of interest. It is submitted that as per Section 16 of the Act petitioner has deposited the entire amount, for which calculation is given by the petitioner which reads as under :-
Sr. No.
Particulars
Amount
1.
Principal Amount
Rs. 57,48,564/-
2.
Interest w.e.f. 2-10-06 to 1-2-11
Rs. 73,94,740.11
It is submitted that in the facts and circumstances of the case learned Court below committed error in directing the petitioner to deposit the amount of Rs. 35,39,625/-. It is submitted that the petition filed by the petitioner be allowed and the impugned order passed by the learned Court below be set aside.
Section 16 of the Act reads as under :-
Date from which and rate at which interest is payable.-- Where any buyer fails to make payment of the amount to the supplier, as required u/s 15, the buyer shall, notwithstanding anything contained in any agreement between the buyer and the supplier or in any law for the time being in force, be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day or, as the case may be, from the date immediately following the dale agreed upon, at three times of the bank rate notified by the Reserve Bank.
From perusal of the record, it is evident that in the award itself there is a direction to the petitioner either to deposit the interest of Rs. 88,30,593/- or to deposit the interest as per Section 16 of the Act. From the order impugned herein it is evident that the learned Court below has not bothered to calculate the interest as per option given to the petitioner in the award. Keeping in view the fact that the validity of the award has yet to be tested by the learned Court below and full amount of principal and substantial amount towards interest which is more than the principal has already been deposited by the petitioner, out of which substantial amount has already been withdrawn by the respondent No. 1, petition filed by the petitioner is disposed of with a short direction that the petitioner shall move an appropriate application for review of the order before the learned Court below with a prayer to review the order dated 8-8-11, whereby petitioner has been directed to deposit a further sum of Rs. 35,39,625/- along with an application for exclusion of time spent by the petitioner in prosecuting the present petition/for condonation of delay. If such applications are filed, then the learned Court below shall re-calculate the interest on the amount of Rs. 57,48,564/- as per Section 16 of the Act keeping in view the option given to the petitioner in the award itself and also keeping in view the fact that the petitioner has deposited the full amount of principal and substantial amount towards interest and validity of the award is yet to be tested in appeal, shall pass fresh order without being impress with the impugned order.
With the aforesaid observations, petition stands disposed of