In Brief
Snehadeep Structures Pvt. Limited supplied goods to Maharashtra Small Scale Industries Development Corporation Ltd. under a March 1995 contract requiring payment after the consignee (MSEB) accepted and paid. A dispute arose over interest on delayed payments under the 1993 Act, which the parties had arbitrated. The High Court set aside the arbitral award. The Supreme Court dismissed the appeal, holding that the 1993 Act's 120-day payment cap (introduced in 1998) did not override the original conditional payment clause. Fresh adjudication of interest would require establishing actual acceptance dates. Section 43(4) of the Arbitration Act applied, allowing restitution claims under the Code of Civil Procedure.
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