HON’BLE SRI JUSTICE K. LAKSHMAN AND HON’BLE SRI JUSTICE VAKITI RAMAKRISHNA REDDY DATE: 07-04-2026 Between in CCC No.160 of 2006 The A.P. Power Generation Corporation Limited & 2 Others .. Appellants -

Defendants Vs.

Lohman Castings Private Limited .. Respondent -

Plaintiff This Court made the following:

COMMON JUDGMENT

(Per Hon’ble Sri Justice K. Lakshman)

H eard Mr. V. Hari Haran, learned Senior Counsel for the appellant in CCCA No.131 of 2009 & respondent in CCCA No.160 of 2006 and Mr. Mohd. Adnan, learned counsel for the respondents in CCCA No.131 of 2009 & appellants in CCCA No.160 of 2006. 2. CCCA No.160 of 2006 is filed by the defendants in O.S.

No.362 of 2002, challenging the judgment and decree dated 27.01.2006 passed by learned XI Additional Chief Judge (fast Track Court), City Civil Court, Hyderabad, whereas CCCA No.131 of 2009 is filed by the plaintiff challenging the very same judgment and decree to the extent of awarding interest @ 6% per annum only on the principal sum.

3. The plaintiff in O.S. No.362 of 2002 is M/s. Lohman Castings Private Limited, Visakhapatnam, while the defendants are the Andhra Pradesh Power Generation Corporation Limited, its Chief Engineer (Generation), Hyderabad and the Chief Engineer, Kothagudem Thermal Power Station, Palwancha, Khammam District.

4. For the sake of convenience, the parties are hereinafter referred to as they were arrayed in O.S. No.362 of 2002.

5. The plaintiff filed the aforesaid suit (O.S. No.362 of 2002)

for recovery of total sum of Rs.68,23,298/- (i.e.,Rs.15,20,905/- towards principal & Rs.53,02,393/- towards interest) with costs and interest at the applicable rates as per the Provisions of the Interest on Delayed Payments to Small and Ancillary Industrial Undertakings Act, 1993, against the defendants contending as under:

i) The plaintiff is a registered Small Scale Industrial Undertaking. It carries on business of manufacturing of various types of castings required for Thermal Power Stations.

ii) Defendant No.1 was in need of the said products and accordingly used to place orders from 1983 onwards and the plaintiff used to supply the same.

iii) In the said process, the defendants placed purchase orders vide Exs.A1 to A13, which are dated 15.04.1993, 05.08.1993, 21.04.1993, 04.01.1994, 19.02.1994, 10.08.1992, 27.11.1993, 27.11.1993, 11.08.1994, 04.10.1993, 28.05.1994,31.10.1991, 06.06.1994, 07.09.1993 and 01.08.1994 and the plaintiff supplied all the material except the material covered by Ex.A10 and purchase order No.CKK/P2/DMA/DN/20/94.

iv) Even then, the defendants did not pay the entire value and they are due and liable to pay an amount of Rs.15,20,905/- along with interest of Rs.53,02,393/- thereon, which is claimed under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993.

v) One of the Directors of the plaintiff, Mr. Gutta Kattaiah Chowdary was found to have embezzled the money worth Rs.45.00 lakhs belonging to the defendants in collusion with their officials by producing fake letter of authorization, for which the defendants instituted criminal proceedings against the said Director and other Officials. On the said pretext, the defendants are not paying the aforesaid amount.

vi) After exchange of legal notice and reply between the plaintiff and the defendants, the plaintiff filed the aforesaid suit seeking the aforesaid amount against the defendants.

6. Defendant No.2 filed a detailed written statement denying the claim of the plaintiff contending as under:

i) The plaintiff quoted discrepant purchase orders, which would bring out that the plaintiff itself is not certain about the supplies made and the amounts due.

ii) The plaintiff was never regular and prompts in supplying the material.

iii)All the purchase orders are subject to terms and conditions peculiar to each of them and, therefore, the plaintiff could not have combined all the claims and filed a single suit. Thus, the suit is bad for mis-joinder of proper parties and lack of c