We are a Small Scale Unit. We have filed a suit in the year 1988 for realization of our outstanding dues from 1986 also claim pendilite interest. This suit is still pending and has been reffered to the arbritrator for settlement of claim. Now we want to take benefit under the Act " The Interest on delayed payment to Small Scale and ancillary industrial undertaking Act 1993 ". This act came into force on 23rd Sept. 1992. Now, whether this act is applicable in our case or not ? Is there any decisions for retrospective effect of this act ?
1 Answer from Attorneys
As per latest supreme court judgement, the court may take into consideration the latest "interest regime" in the country even if the statute may be providing higher interest. In this case though the Arbitration & Concilliationn Act, 1996 provided 18% interest, and the same was also awarded by the Arbitrator, the court reduced it to 9%.
therefore, interest may be within discretion of the court / arbitrator to be exercised as per totality of facts and circumstances and the market situations.