Drawings/designs supply and erection supervision fees from German contractor: designs non-taxable; supervision taxed as FTS/PE depending on six-month ...
Imported analyser diagnostic cartridges treated as accessories with analyser system, not standalone diagnostic reagents; extended limitation and penal...
Steel-timber construction shuttering/formwork tariff classification dispute: essential character held steel, classified as shuttering under Heading 73...
SC upheld the arbitral award and HC's decision, holding that the transaction was a bill discounting facility, not a loan, rendering the Usurious Loans Act inapplicable. Relying on Section 31(7) of the Arbitration Act, SC affirmed party autonomy in stipulating interest, including high and compound interest, and held that the agreed 36% compound interest was not unconscionable, penal, or opposed to public policy. Section 74 of the Contract Act was found inapplicable to the enhanced interest clause, which was treated as a valid commercial bargain. The contra proferentem rule was rejected in light of clear contractual language. Appeal dismissed.
SC upheld the arbitral award and HC's decision, holding that the transaction was a bill discounting facility, not a loan, rendering the Usurious Loans Act inapplicable. Relying on Section 31(7) of the Arbitration Act, SC affirmed party autonomy in stipulating interest, including high and compound interest, and held that the agreed 36% compound interest was not unconscionable, penal, or opposed to public policy. Section 74 of the Contract Act was found inapplicable to the enhanced interest clause, which was treated as a valid commercial bargain. The contra proferentem rule was rejected in light of clear contractual language. Appeal dismissed.
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