JUDGMENT

S.B. Sinha, J. —

1.Leave granted.

2.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 is the question involved herein.

3.Before, however, adverting to the said question, we may notice the fact of the matter.

Appellant is a small scale unit registered with the District Industries Centre. Admittedly, it supplied Castor Oil to the respondent valued at Rs. 89,13,589/-. A sum of Rs. 49,99,000/- had been paid by the respondent. The invoices of the credit bills attached with each of the supply contained a clause relating to payment of interest in the following terms :

“amount must be paid within seven days or you are liable to pay 2% interest per month.”

4.It is not in dispute that at the foot of each credit bill an officer of the respondent - company had put its signatures as a token of acceptance.

5.Appellant is said to have adjusted the amount first towards interest at the stipulated rate and balance against the principal amount. As despite demand the amount due and owed to it was not paid by the respondent, a legal notice was served upon it claiming interest on the said sum. It was stated that t