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2025 Supreme(Telangana) 263

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P. SAM KOSHY, N. TUKARAMJI, JJ.
Transmission Corporation of Andhra Pradesh Limited - Appellant
Versus
M/s. Gowri Shankar Cable Industries - Respondent
Civil Miscellaneous Appeal Nos. 940, 941, 943, 944, 946, 952, 953, 954 of 2015
Decided On : 21-05-2025

Advocates:
Advocate Appeared:
For the Appellants : Vikram Pooserla, Anup Koushik
For the Respondents: P. Sri Raghu Ram, K. Raghu Babu

The Limitation Act applies to claims under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, despite the latter lacking a specific limitation period.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Sections 34 and 37 - Challenge to an order dismissing a Section 34 petition against an award for delayed payments - Claim petition filed under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 - Court rules that provisions of Limitation Act are applicable, setting aside the findings on limitation by both the Facilitation Council and the learned XIV Addl. Chief Judge. (Paras 4, 22)

(B) Limitation - The claim petition was found to be beyond the limitation period as per the Limitation Act, 1963; however, the impacts of the statutory provisions under the Act of 1993 and 2006 were discussed with respect to continuous liability and the absence of a specified limitation period. (Paras 10, 12, 18, 22)

Facts of the case:
The appellant defaulted on payments for supplies made by respondent No.1, leading to a claim for Rs.32,63,673/- filed before the Facilitation Council which ruled in favor of respondent No.1, awarding Rs.24,14,382/- plus interest. (Paras 6, 16)

Findings of Court:
The court found that the decisions on limitations were flawed, requiring a remand to the Facilitation Council for determining the actual period of claim barring. (Paras 22, 24)

Issues: Whether the claim was time-barred, given the aforementioned legislative frameworks, and the application of the Limitation Act. (Paras 10, 15)

Ratio Decidendi: The provisions of the Limitation Act apply to the claims made under the special Acts, conflicting with the Facilitation Council's conclusions. (Paras 20, 22)

Result: Appeals partly allowed, matter remanded for factual determination on limitation.

Table of Content
1. initial case overview and introduction of parties. (Para 1 , 2)
2. facts of the case and chronology of events. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. arguments regarding limitation and statutory interpretation. (Para 9 , 10 , 12 , 13)
4. nature of the relationship and agreements between parties. (Para 15 , 16 , 17)
5. provisions of the acts facilitating small scale industries. (Para 18 , 19)
6. judicial interpretation of limitation issues. (Para 20 , 21)
7. court's analysis on limitation affecting the case. (Para 22 , 23 , 24)
8. final decision and closure of the case. (Para 25 , 26)

JUDGMENT :

P. Sam Koshy, J.

1. Since the issue raised in the instant appeals is one and the same, they are taken up for analogous hearing and are decided by way of this common judgment.

2. Heard Mr. Vikram Pooserla, learned Senior Counsel representing Mr. Anup Koushik, learned counsel for the appellants and Mr. P. Sri Raghu Ram, learned Senior Counsel representing Mr.K. Raghu Babu, learned counsel for respondent No.1.

3. For convenience, the facts in Civil Miscellaneous Appeal No.940 of 2015 are discussed hereunder.

4. The instant is an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (briefly, the ‘A&C Act’ hereinafter). The challenge is to the order dated 20.07.2015, in Arb.OP.No.1641 of 2003, passed by the learned XIV Addl. Chief Judge, (Fast Track Court), City Civil Court, Hyderabad.

5. Vide the impugned order; the learned XIV Addl. Chief Judge had dismissed the petition filed under Section 34 of the A&C Act by the appellant herein affirming the award dated 16.11.2002, in Case No. 29/3/1/608, passed by respondent No.2 / The A.P. Industry Facilitation Council (for short, the ‘Facilitation Council’).

6. The facts relevant for adjudication of the instant appeal are that the appellant had made certain purchases of AAA and ACSR Conductors from respondent No.1 somewhere in the year 1996. The entire demand as raised by the appellant was duly supplied by respondent No.1. However, after the supply was made, the appellant failed in honoring the payment schedule and there was a considerable delay in making the payments and, in addition, there were some bills also which were outstanding. The respondent No.1, thereafter, filed a claim petition before the Facilitation Council for an amount of Rs.32,63,673/- along with interest and also directed the appellant to pay the balance of outstanding amount. The Facilitation Council after hearing both the parties, vide its award dated 16.11.2002, allowed the claim petition to the extent of directing the appellant to pay an amount of Rs.24,14,382/- and also awarded 10% simple interest post award on the said amount.

7. This award of the Facilitation Council was subjected to challenge by the appellant under Section 34 of the A&C Act before the learned XIV Addl. Chief Judge. The learned XIV Addl. Chief Judge dismissed the said petition, leading to filing of the instant appeal under Section 37 of the A&C Act.

8. The claim petition in the instant case was filed by respondent No.1 before the Facilitation Council on 10.05.2001.

9. The primary challenge by the appellant before the Facilitation Council as also before the learned XIV Addl. Chief Judge was that the claim petition was barred by limitation. The Facilitation Council had not accepted the said objection primarily on the ground that neither the Interest on Delayed Payments To Small Scale and Ancillary Industrial Undertakings Act, 1993 (for short, the ‘Act of 1993’), nor does the Micro, Small and Medium Enterprises Development Act, 2006 (for short, the ‘Act of 2006’) prescribe any period of limitation for any of the parties to approach Facilitation Council in respect of their claim. The same view was also accepted by the learned XIV Addl. Chief Judge while dismissing the Section 34 petition.

10. In the instant appeal, under Section 37 of the A&C Act also, the contention of the learned Senior Counsel for the appellant is that the aspect of limitation ha

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