JUDGMENT :

M.C. Tripathi, J.

1. Heard Sri Alok Kumar Yadav and Sri Shantanu Srivastava, learned counsel for the appellant and Sri Aditya Khandekar, Advocate along with Sri Varun Srivastava, learned counsel for the respondent.

FACTUAL MARTIX OF THIS CASE

2. The appellant was engaged in the business of manufacturing transformers of various capacities. The appellant initially was a Proprietorship Firm known as MEI Power Private Limited. However, it was registered as a Private Limited Company with the name of Marsons Electrical Industries but it is now changed to MEI Power Private Limited.

3. The appellant has set up a small scale manufacturing industry in Agra and the same was acknowledged by the Director of Industries as the “small scale industry” and a certificate to that effect was also issued on 9.2.1971. This certification was given under the provisions of the Industrial Development and Regulation Act, 1951. The appellant claims that he has been working as small scale industry since then.

4. The Parliament in its wisdom in the year 1993 had promulgated an Act called ‘Interest on De