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1993 Supreme(SC) 1206
SUPREME COURT OF INDIA
J.S. Verma and S.C. Agrawal, JJ.
Oil and Natural Gas Commission and another - Appellants
Versus
Association of Natural Gas Consuming Industries and others - Respondents
IAs Nos. 1-11 and 23-33 in Civil Appeals Nos. 8530-40 of 1983
Decided On : 06-04-1993
Headnote:
Gujarat Sick Textile Undertakings Act, 1986 - Payment of interest claimed – Claim of compensation - Above figures supplied by ONGC as arrears due from these respondents as are disputed on behalf of the respondents only with regard to calculation of the interest - Principal amount is admitted it being agreed between parties that adjustment of any sum paid remaining to be made by ONGC will be made on proof of such payment being given to ONGC by respondents claiming any further adjustment on that basis - For present purpose, it is not necessary to go into this aspect apart from placing this fact on record - Liability of these respondents to make payment of amounts due from them to ONGC as a result of benefit of stay orders obtained by them giving requisite undertaking, is beyond controversy and cannot be disputed - Amounts have increased on account of the failure of the respondents to make payment while continuing to take the benefit of the supply of gas to them under the stay orders – Held, . However, in the present situation, the respondents find considerable difficulty in payment of their dues in a lump sum. On behalf of the respondents, prayer was made to permit the respondents to clear their dues in convenient monthly installments - Court have taken into account all the relevant factors. It is true that ONGC must be permitted to recover its dues at the earliest - It is also true that the financial crunch faced by the respondents must also be taken into account to avoid the closure of any of these industries, which may have several adverse side effects, including the unemployment of a large number of workmen. We have, therefore, considered the matter taking into account financial status and capacity of each respondent to decide the nature of order to be made at this stage for recovery of the dues of ONGC from respondents, with the able assistance of the learned counsel for the parties - In our view, those respondents which are prepared to pay their dues in monthly installments fixed by us, in the first instance towards the principal amount, should be given that opportunity to clear their dues - However respondents which are unable to accept this proposition, for whatever reason, cannot be given this chance and in their case ONGC has to be permitted to recover its entire dues, in a lump sum, straightaway, also out of the securities furnished by such respondents with their undertaking for obtaining benefit of the stay orders made by the Court - In the above background, we have proceeded to consider the case of each of industries and we make this order, accordingly - Court consider it appropriate that at least the principal amount shown to be due from each of industries as above, must be paid off within a period of five years latest - Court have considered the fixation of installments for payment of principal amount in each case, on this basis taking into account present financial capacity - Respondents have been divided in different categories on above basis – Appeal disposed of
ORDER :
I As Nos. 1-11 in CAs Nos. 8530-40 of 1983
1. After the disposal 1990 Supp SCC 397 of the civil appeals, these applications have been made by Oil and Natural Gas Commission (ONGC) for certain directions on account of the non-payment by the industries (the respondents in the appeals) of their dues for the period prior to 29-1-1987 remaining unpaid on account of certain stay orders made during the pendency of the civil appeals, of which the respondents have taken full benefit. This situation continues, in spite of the undertaking given by the respondents to avail benefit of the stay orders, and the appeals being decided in favour of ONGC.
2. According to the statement filed on behalf of ONGC, the particulars of the arrears due, as on 31-3-1993, towards the principal amount and the interest thereon, for the period prior to 29-1-1987, from each of these industries (respondents), is as under:
Sl. No. Name of the company Net arrears(in Rs.)(31-3-1993)
Interest (in Rs.)
1. Dinesh Mills 2,78,05,569.00 8,86,05,454.63
2. Ambica Mills 1,58,00,500.00 4,96,58,985.70
3. New India Industries 1,90,15,408.00 6,05,(X),335.29
4. Priya Laxmi Mills 5,85,75,828.00 18,51,98,026.45
5. Punjab Steel 1,79,00,737.00 5,90,95,028.57
6. Sarabhai Services 14,49,56,983.00 46,32,28,539.82
7. Alembic Glass Inds. 22,28,79,783.00 8,32,22,315.11
8. Alembic Chemicals 6,69,43,060.00 21,58,64,358.36
9. Chandan Metals 7,90,088.00 26,13,435.19
10. Jayant Paper Mills 2,04,85,254.00 6,52,52,651.74
11. Gujarat Glass 2,35,83,107.00 6,82,60,502.09
12. Metrowood Engg. Works 48,00,260.00 1,32,54,169.05
13. Melamine & Fibre 48;02,709.00 1,31,15,003.08
14. Mahendra Mills 6,63,09,463.00 19,18,04,459.12
15. Navjivan Mills 4,47,03,538.00 12,40,27,043.21
16. Bharat Vijay Mills 4,90,83,099.00 14,74,95,758.92
17. Calico Mills, Kalol 3,23,19,315.00 9,35,05,728.15
18. Calico Mills, Ahmedabad 13,82,88,987.00 39,56,82,667.60
19. Calico Dying & Printing 4,22,541.00 18,06,017.49
The above figures supplied by ONGC, as the arrears due from these respondents as on 31-3-1993, are disputed on behalf of the respondents only with regard to calculation of the interest. The principal amount is admitted, it being agreed between the parties that adjustment of any sum paid remaining to be made by ONGC will be made on proof of such payment being given to ONGC by the respondents claiming any further adjustment on that basis. For the present purpose, it is not necessary to go into this aspect, apart from placing this fact on record.
3. The liability of these respondents to make the payment of the amounts due from them to ONGC, as a result of benefit of the stay orders obtained by them giving the requisite undertaking, is beyond controversy and cannot be disputed. The amounts have increased on account of the failure of the respondents to make the payment while continuing to take the benefit of the supply of gas to them under the stay orders. However, in the present situation, the respondents find considerable difficulty in payment of their dues in a lump sum. On behalf of the respondents, prayer was made to permit the respondents to clear their dues in convenient monthly instalments.
4. We have taken into account all the relevant factors. It is true that ONGC must be permitted to recover its dues at the earliest. It is also true that the financial crunch faced by the respondents must also be taken into account to avoid the closure of any of these industries, which may have several adverse side effects, including the unemployment of a large number of workmen. We have, therefore, considered the matter taking into account the financial status and capacity of each respondent to decide the nature of order to be made at this stage for recovery of the dues of ONGC from the respondents, with the able assistance of the learned counsel for the parties.
5. In our view, those respondents which are prepared to pay their dues in monthly instalments fixed by us, in the first instance towards the principal amount, should be given that oppo
