In Brief
Shanti Conductors and others challenged a High Court judgment that denied interest on delayed payments under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. The Court clarified that the Act applies when goods are supplied or services rendered after 23.09.1992, regardless of when the contract was made. The Act is prospective, not retrospective. Section 10's overriding effect applies only to the Act's provisions, not to the Limitation Act. The suit was barred by limitation as it was filed more than three years after the liability accrued. The Court held that suits for recovery of interest alone are maintainable but dismissed the appeals on limitation grounds."
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