TaxTMI 
TaxTMI 
2022 (9) TMI 1701
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.... and Divyol 480 (SN 500). In the month of April, 2018 and August, 2018 the Respondent placed 3 (three) purchase orders, vide purchase order nos. Respondent/GO/02/18-19 dated April 16, 2018, Respondent/GO/03/18-19 dated May 10, 2018 and Respondent/GO/05/18-19 dated August 18, 2018 for supply of above products. In pursuance of purchase orders, the Appellant supplied the products to Respondent as per the terms of the purchase order, the same was accepted without any protest. The Appellant raised invoices for Rs. 73,56,627/- on the Respondent and accepted by the Respondent. 4. The Respondent because due to an extent of Rs. 3,61,91,915.35/- towards the credit transaction prior to April 28 of 2018, thus, the total amount due is Rs. 4,35,48,542.35/- as on August 23, 2018. The Respondent paid Rs. 3,62,00,000/- towards discharge of debt due, in part, till August 23, 2018. An amount of Rs.73,48,542.35/- remained unpaid by 19th October, 2019. 5. As the Respondent failed to pay the balance amount of Rs.73,48,542.35/-, the Appellant issued a notice dated December 31, 2019, demanding payment of outstanding amount of Rs. 73,48,542/- together with interest @ 24% per annum as per the terms an....
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.... signing under it, therefore, the Respondent is not under obligation to pay interest @ 24% on the delayed payment, on the other hand no date is fixed for paying of the invoice amount. In the absence of acceptance to such term for payment of interest @ 24%, the interest claimed by Appellant interest would not form part of debt to satisfy the threshold requirement. Hence, the Adjudicating Authority rightly dismissed the application by impugned order. It warrants no interference by this Appellate Tribunal. If the Tribunal for any reason, not convinced by argument of the Respondent, the order may be set aside and remanded to Adjudicating Authority to afford an opportunity to file reply and contest the application, so, as to decide the matter on merits. 10. Admittedly, the impugned order was passed by the Adjudicating Authority at the threshold even without affording an opportunity to Respondent to put forth its defence by ways of Reply, however the Respondent filed petition as demur but that application was not decided, no order was passed on demur application. 11. Though no specific form is prescribed under IBC or any regulations formed thereunder as to contents of order or Judg....
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....s not satisfy the requirement, this Tribunal can't decide in question as to liability to pay interest either in the presence of contract or in the absence of contract, without affording an opportunity to file reply to the petition, in case the liability to pay interest is decided without an opportunity it would amount to denial of reasonable opportunity which is in violation of principles of natural justice. 15. Though the requisites of order are not prescribed, still the general principles have to be followed while writing order. The Apex Court and other court time and again laid down principles regarding contracts of order. 16. It is settled law that the Court or Tribunal shall record reasons for its conclusion on the basis of merits. What an order should contain normally is not specified anywhere but the order must be reasoned one since the judgment or order in its final shape usually contains in additional to formal parts (a) A preliminary or introductory part, showing the form of the application upon which it was made, the manner in which and the place at which, the writ or other originating process was served, the parties appearing any consent, waivers, undertakings or ....
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....ies Limited' (Civil Appeal No. 4278 of 2010) in para No. 7 of the judgment and they are extracted hereunder: "7. These guidelines are only illustrative in nature, not exhaustive and can further be elaborated looking to the need and requirement of a given case:- a) It should always be kept in mind that nothing should be written in the judgment/order, which may not be germane to the facts of the case; It should have a co-relation with the applicable law and facts. The ratio decidendi should be clearly spelt out from the judgment/order. b) After preparing the draft, it is necessary to go through the same to find out, if anything, essential to be mentioned, has escaped discussion." c) The ultimate finished judgment/order should have sustained chronology, regard being had to the concept that it has readable, continued interest and one does not feel like parting or leaving it in the midway. To elaborate, it should have flow and perfect sequence of events, which would continue to generate interest in the reader. d) Appropriate care should be taken not to load it with all legal knowledge on the subject as citation of too many judgments creates m....