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1998 DIGILAW 182 (GUJ)

Madhusudan Vegatable Products Company LIMITED v. G. I. D. C. ,ahmedabad

1998-03-25

S.K.KESHOTE

body1998
S. K. KESHOTE, J. ( 1 ) THE matter was called out for hearing in the first round, second round and lastly in the third round. None put appearance on behalf of the respondents. Perused the special civil application, affidavit-in-reply and affidavit in rejoinder, and heard the learned counsel for the petitioner. ( 2 ) BY this special civil application the petitioners prayed for quashing and setting aside the various bills issued by the respondent Corporation to the petitioners which are collectively produced at Annexure-B to the petitioner. So far as the bills are concerned, they include the amount of interest for the period upto March, 1986 for the alleged delayed payment of the charges for supply of gas to them by the respondent. This demand is justified under Clause 5. 02 of the Agreement for supply of gas by the Corporation to the petitioners, which reads as under :"5. 02 If any bill is not paid within the aforesaid period of seven days after the receipt of invoice the unit shall pay interest for the period from the date of receipt of the bill to the date of payment @ 1% higher than the rate of interest of cash credit facilities of the State Bank of India prevailing at the time. "the grievance of the petitioners is that the respondents had not given any bill to the petitioners and as such Clause 5. 02 cannot be made applicable, and there is no justification for the respondent Corporation for resorting to that clause and charging interest for the delayed payment of charges for supply of gas by the Corporation. Learned counsel for the petitioner further contended that before making any demand for interest it was obligatory on the part of the respondent to give notice and opportunity of hearing to the petitioners. It is not in dispute that the amount has been paid by the petitioners, and as such ultimately if it is held that interest could not be demanded from the petitioners, then the question will be only of refund of the same. However, it is true that prima facie the interpretation given to Clause 5. 02 by the learned counsel for the petitioners may not be without any substance, and further demand of interest has been made without any notice or giving opportunity of hearing to the petitioners. However, it is true that prima facie the interpretation given to Clause 5. 02 by the learned counsel for the petitioners may not be without any substance, and further demand of interest has been made without any notice or giving opportunity of hearing to the petitioners. ( 3 ) INTEREST of justice will be met in case this petition is disposed of in terms that the respondent Corporation shall given an opportunity of hearing, and after hearing the petitioners if it satisfied that the interest cannot be charged from them, then necessary orders may be passed for the refund of the amount. This exercise shall be undertaken within a period of three months from the date of receipt of writ of this order. If the amount of interest is accepted to be wrongly charged from the petitioners, then refund shall be made to them within next one month. If the claim of the petitioners for refund of interest is not accepted, then a reasoned order may be passed. The petition is disposed of accordingly. Rule discharged. No order as to costs. .