{"id":253198,"date":"2005-01-05T00:00:00","date_gmt":"2005-01-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/uoiors-vs-ms-upper-ganges-on-5-january-2005"},"modified":"2015-03-15T06:16:30","modified_gmt":"2015-03-15T00:46:30","slug":"uoiors-vs-ms-upper-ganges-on-5-january-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/uoiors-vs-ms-upper-ganges-on-5-january-2005","title":{"rendered":"Uoi&amp;Ors vs M\/S Upper Ganges &#8230; on 5 January, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Uoi&amp;Ors vs M\/S Upper Ganges &#8230; on 5 January, 2005<\/div>\n<div class=\"doc_author\">Author: S N Variava<\/div>\n<div class=\"doc_bench\">Bench: S.N.Variava, Dr.Ar.Lakshmanan, S.H.Kapadia<\/div>\n<pre id=\"pre_1\">           CASE NO.:\nAppeal (civil)  3018 of 1999\n\nPETITIONER:\nUnion of India &amp; Ors.\n\nRESPONDENT:\nM\/s Upper Ganges Sugar &amp; Industries Ltd.\n\nDATE OF JUDGMENT: 05\/01\/2005\n\nBENCH:\nS.N.Variava, Dr. AR. Lakshmanan &amp; S. H. Kapadia\n\nJUDGMENT:\n<\/pre>\n<p id=\"p_1\">J U D G M E N T<\/p>\n<p>S. N. VARIAVA, J.\n<\/p>\n<p id=\"p_1\">\tThis Appeal is against the Judgment of the Allahabad High Court<br \/>\ndated 16th January 1998.\n<\/p>\n<p id=\"p_2\">\tBriefly stated the facts are as follows.\n<\/p>\n<p id=\"p_3\">\tOn 12th October 1974, the Central Government issued<br \/>\nNotification No. 145 of 1974 granting certain rebates on sugar.  On 1st<br \/>\nAugust 1975, the Respondents submitted a claim for Rs. 27,84,474\/-.<br \/>\nThe Respondents claimed this amount as a rebate by calculating<br \/>\nexcess on excess production for the period 1st December 1974 to 30th<br \/>\nSeptember 1975.  The Assistant Collector was of the view that the<br \/>\nrebate could only be claimed on excess of average production.<br \/>\nTherefore, by an Order dated 8th January 1976, he allowed a rebate of<br \/>\nonly Rs.12,76,621\/-.\n<\/p>\n<p id=\"p_4\">\tThe Respondents filed a Writ Petition No.762 of 1981 before the<br \/>\nAllahabad High Court claiming credit for the balance amount of<br \/>\nRs.15,07,791\/-.  By an Order dated 7th December 1981, the<br \/>\nRespondents were directed to exhaust the remedy of Appeal as<br \/>\nprovided under the statute.  The Respondents then filed an Appeal,<br \/>\nwhich was dismissed on 8th January 1976 by the Collector (Appeals).<br \/>\nThe Respondents filed a further Appeal to the Tribunal.   The Tribunal<br \/>\nby its Order dated 28th January 1992 held that the rebate was to be<br \/>\ngranted on excess of excess production. Thus, the Appeal of the<br \/>\nRespondents was allowed with consequential reliefs, i.e., that they<br \/>\nwere to receive a credit in the sum of Rs.15,07,791\/- in their PLA<br \/>\nAccount.  Pursuant to the Order of the Tribunal, the Respondents were<br \/>\ngiven credit in the above mentioned sum.\n<\/p>\n<p id=\"p_5\">\tOn 1st May 1993, the Respondents filed an application before the<br \/>\nAssistant Commissioner claiming interest on the sum of<br \/>\nRs.15,07,791\/- at 18% from 8th January 1976 to 28th January 1992.<br \/>\nThey made this claim on the ground that they were entitled to<br \/>\ncompensation for the amount not having been paid to them earlier.<br \/>\nThis application was rejected by the Assistant Collector on 21st<br \/>\nDecember 1993.  The Collector (Appeals) dismissed the Appeal of the<br \/>\nRespondents by an Order dated 1st August 1994.  The Respondents<br \/>\nfiled a further Appeal to the Tribunal, which was also rejected on 3rd<br \/>\nMay 1997.  The Respondents then filed a Writ Petition in the Allahabad<br \/>\nHigh Court which has been allowed by the impugned Judgment.  It has<br \/>\nbeen held that the Respondents are entitled to interest at the rate of<br \/>\n10%.\n<\/p>\n<p id=\"p_6\">\tThis matter, like so many others on our Board for the last few<br \/>\nmonths, indicates the negligent and callous manner in which the<br \/>\nRevenue is dealing with litigation.  In matter after matter, we have<br \/>\nfound that relevant documents have not been filed with the paper<br \/>\nbooks.  Even at the time of hearing neither the Advocate-on-Record<br \/>\nnor arguing Counsel have the relevant documents with them.  In most<br \/>\ncases it is the other side which supplies the relevant documents.  On<br \/>\nbeing queried by Court, Counsel frankly states that no officer is coming<br \/>\nforward to give any instructions or supply any documents.  Even with<br \/>\nthe stakes being so high there is apparent callousness and negligence<br \/>\non the part of the Revenue authorities.  It is hoped that this sorry<br \/>\nstate of affairs will get remedied and proper instructions given and<br \/>\ndocuments supplied to the Advocates-on-Record and the arguing<br \/>\ncounsel.\n<\/p>\n<p id=\"p_7\">\tIn this matter, the question before the Court is whether the<br \/>\nRespondents were entitled to interest on the amount of<br \/>\nRs.15,07,791\/-.  Both parties have argued at great length and cited a<br \/>\nnumber of authorities as to when interest can or cannot be granted.<br \/>\nIn our view, for the purposes of this case, it is not necessary to go into<br \/>\nthe larger question whether or not interest can be granted for delayed<br \/>\npayments.\n<\/p>\n<p id=\"p_8\">\tIn this case, in our view, there are two reasons why interest<br \/>\ncould not have been granted.  The Respondents have very fairly<br \/>\nhanded over to the Court the Appeal filed by them before the Tax<br \/>\nTribunal and the Order dated 28th January 1992.  In the Appeal filed<br \/>\nby them, the Respondents had prayed for interest at the rate of 18%<br \/>\nper annum with effect from 8th January 1976 till payment.  As already<br \/>\nnoted above, the Tribunal upheld the contention of the Respondents<br \/>\nthat they were entitled to credit, but the Tribunal did not grant<br \/>\ninterest.  Having already made a prayer and the same not having been<br \/>\ngranted, it was not open to the Respondents to again make a claim for<br \/>\ninterest.\n<\/p>\n<p id=\"p_9\">\tIt must be mentioned that when the Respondents again made a<br \/>\nclaim for interest, on 1st May 1993, their claim is not rejected on the<br \/>\nground that the same has not been granted by the Tribunal.  It is<br \/>\nmerely rejected on the ground that there is no provision under the<br \/>\nCentral Excise and <a href=\"\/doc\/53524\/\" id=\"a_1\">Salt Act<\/a> for payment of interest.   Even in the S.L.P.<br \/>\nbefore this Court there is no ground that interest could not have been<br \/>\nclaimed as it had not been granted by the Tribunal.  It is only when<br \/>\nCourt asked for relevant papers and Respondents fairly handed over to<br \/>\nthe Court copies of their Appeal and the Order of the Tribunal that it<br \/>\nwas noticed that such a prayer had been made and had not been<br \/>\ngranted.  Mr. Sudhir Chandra has submitted that Appellants should not<br \/>\nbe allowed to take up this contention as there is no such ground in the<br \/>\nSLP.  However, in our view this is merely a question of law and thus<br \/>\ncannot be ignored by this Count.  As the Tribunal had not granted<br \/>\ninterest, Respondents cannot be allowed interest by claiming it again<br \/>\nat a later date.\n<\/p>\n<p id=\"p_10\">\tThe second ground on which the Respondents are not entitled to<br \/>\ninterest is that this is not a case where the question, whether they<br \/>\nwere entitled to the credit of Rs.15,07,791\/-, was free from doubt.<br \/>\nThis was a question which was bona fide agitated.  It is only in 1992<br \/>\nthat this question was settled by the Tax Tribunal.  This therefore is<br \/>\nnot a case where the money had been withheld unjustifiably. Thus<br \/>\neven presuming, in law interest can be granted on grounds of equity<br \/>\nthis is not a case where such principles could be applied.   If that be<br \/>\nso, then in the absence of any provision in the contract or any<br \/>\nstatutory provision, interest could not have been awarded.<br \/>\n\tFor the above reasons, the impugned Judgment cannot be<br \/>\nsustained.  It is hereby set aside.  The Appeal stands allowed.  There<br \/>\nwill however be no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Uoi&amp;Ors vs M\/S Upper Ganges &#8230; on 5 January, 2005 Author: S N Variava Bench: S.N.Variava, Dr.Ar.Lakshmanan, S.H.Kapadia CASE NO.: Appeal (civil) 3018 of 1999 PETITIONER: Union of India &amp; Ors. RESPONDENT: M\/s Upper Ganges Sugar &amp; Industries Ltd. DATE OF JUDGMENT: 05\/01\/2005 BENCH: S.N.Variava, Dr. AR. Lakshmanan &amp; S. H. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-253198","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Uoi&amp;Ors vs M\/S Upper Ganges ... on 5 January, 2005 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/uoiors-vs-ms-upper-ganges-on-5-january-2005\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Uoi&amp;Ors vs M\/S Upper Ganges ... on 5 January, 2005 - Free Judgements of Supreme Court &amp; 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