Petitioner awarded 7% interest for payment delays, emphasizing timely compensation.

The court held that the petitioner is entitled to interest compensation for delays in payment of audit fees at a rate of 7% per annum. The decision was based on the principle that interest should be paid when there is a statutory enactment, trade practice, or agreement to that effect. The court emphasized that a delay of four years or more is unreasonable, and interest is awarded to preserve the real value of money in cases of inordinate delay. Interest accrues from the date of determination in each case until payment, to be made within eight weeks of the court's order. Compliance was scheduled for a specified date.

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Issues: Delay in payment of audit fee, entitlement to interest on delayed payment

Delay in payment of audit fee:
The petitioner raised a central grievance regarding a significant delay in paying the audit fee. It was acknowledged that the audit fee had been paid during the pendency of the writ petitions. The petitioner, engaged as an auditor under the Assessing Officer's powers, conducted audits for three entities. The delays in payment for each entity were substantial, ranging from nearly four years in each case. The petitioner sought interest compensation for the delays in payment.

Entitlement to interest on delayed payment:
The respondents argued that the statute did not grant the petitioner the right to interest despite the delays in payment. On the contrary, the petitioner contended that interest should be granted as compensation for the delays. The petitioner relied on previous judgments to support their claim, including a case involving SC & Associates, Chartered Accountants vs. Union of India and Sandvik Asia Ltd. vs. Commissioner of Income Tax-I, Pune and Others. After hearing arguments from both sides, the court considered the delay in payment of the audit fee and the petitioner's entitlement to compensation for the delay.

The court held that interest should be paid to the petitioner at a rate of 7% per annum. This decision was based on the principle that interest is payable when there is a statutory enactment, trade practice, or an agreement to that effect. Additionally, interest may be awarded to preserve the real value of money in cases of inordinate delay. The court emphasized that a delay of four years or more cannot be deemed reasonable. Therefore, the petitioner was deemed entitled to compensation for the delay in payment of the audit fee. The interest would accrue from the date of determination in each case until the date of payment, and the payment of interest was to be made expeditiously, not later than eight weeks from the receipt of the court's order. The matters were listed for compliance on a specified date.

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