TaxTMI 
TaxTMI 
2013 (3) TMI 886
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....hemicals used in the leather industries for manufacture of leather products. The petitioner supplied chemicals to the respondent for a sum of Rs. 5,11,849/- (Rupees five lakhs eleven thousand eight hundred forty nine only) as on 01.04.2008. Thereafter, additional chemicals were supplied to the respondent and after adjusting the payment received from the respondent, an amount of Rs. 10,08,088/- (Rupees ten lakhs eight thousand eighty eight only) was still outstanding. 3. It is submitted that as per the agreed terms of sale, the respondent had agreed to pay interest @ 36% p.a., if the bills were not paid on due date. That by adding interest to the principal on the date of filing of this petition, an amount of Rs. 15,10,200/- (Rupees fifteen ....
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....ce on the judgment of the Hon'ble Supreme Court in the case of M/s.Vijay Industries vs. NATL Technologies Limited (CDJ 2008 SC 2151), wherein the Hon'ble Supreme Court was pleased to lay down as under:- "Companies Act, 1956 Section 433, 434 Whether interest payable on the sum due would be a debt so as to attract the provisions of Sections 433 and 434 of the Companies Act, 1956 Respondent never denied the demand of interest as such, but in its reply dated 30.12.2003 merely stated that a sum of Rs. 16,80,468 (sic for Rs. 15,18,460) was due Section 433 of the Companies Act does not state that the debt must be precisely a definite sum. It has not been disputed before us that failure to pay agreed interest or the statutory interes....
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....puted. The judgment of the Division Bench also contains a legal flaw insofar as it failed to take into consideration that the appellant had in fact issued three notices being dated 6.01.2003, 8.09.2003 and legal notice dated 23.12.2003 specifically mentioning that the payments had been adjusted towards interest first and balance, if any, shall be adjusted towards the principal. Thus, a prima facie case was made out. For the reasons aforementioned, have no other option but to set aside the judgment of the High Court. Interest of justice would be subserved if we in exercise of our jurisdiction under Article 142 of the Constitution of India direct that the respondent to pay simple interest on the admitted sum at the rate of 12% per annum on th....