Tag: Binding Precedent

No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits
9Oct By The Legal ChamberNo Comments
Supreme Court

No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits

This Supreme Court judgment clarifies that a contractual clause merely barring interest on delayed or disputed payments does not, by itself, expressly or by necessary implication prohibit an arbitral tribunal from awarding pendente lite interest. The power to award such interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996, is only denuded if the agreement contains a clear and comprehensive bar. Facts Of The Case: The dispute arose from an arbitral award dated 21.11.2004, which directed the appellant, Oil and Natural Gas Corporation Ltd. (ONGC), to pay a total sum of USD 6,56,272.34 to the respondent, M/s G & T Beckfield Drilling Services Pvt. Ltd., for outstanding invoices and other claims. The arbitral tribunal rejected ONGC's preliminary objection to the ma...
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Supreme Court Upholds “Equal Pay for Equal Work” for Contractual Assistant Professors
25Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds “Equal Pay for Equal Work” for Contractual Assistant Professors

The Supreme Court affirmed the principle of "equal pay for equal work" for contractually appointed Assistant Professors performing identical duties as their regular and ad-hoc counterparts. It directed the State to pay them the minimum of the pay scale applicable to the post, holding that the nature of the appointment (contractual) does not negate the entitlement to pay parity when the work is the same. Facts Of The Case: The case originated from the State of Gujarat where a significant number of sanctioned posts for Assistant Professors in Government Engineering and Polytechnic colleges remained vacant for years. To address this shortage, the state government made appointments on both ad hoc and contractual bases. The respondents were Assistant Professors appointed on a contractua...
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Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions

The Supreme Court held that the suit against the State Financial Corporation was not maintainable due to non-compliance with the mandatory notice under Section 80 CPC. The decree was declared a nullity as it erroneously applied the Interest on Delayed Payments Act, 1993, to a pre-enactment transaction and fastened liability without privity of contract. Execution proceedings were quashed. Facts Of The Case: In 1985, Respondent No. 1, M/s. Vigyan Chemical Industries, supplied raw materials to Respondent No. 2, an industrial unit. Due to a loan default, the Appellant, Odisha State Financial Corporation (OSFC), took possession of Respondent No. 2's unit in 1987 under the State Financial Corporations Act, 1951. In 1988, Respondent No. 1 filed a recovery suit for its unpaid dues. OSFC was impl...
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