In Brief
The State of Arunachal Pradesh appealed a High Court order that granted interest to small-scale industrial undertakings under the 1993 Act for payments delayed under pre-1992 contracts. The Supreme Court held that the Act does not apply retrospectively to contracts fully executed before its commencement. While the Court set aside the grant of statutory interest under the 1993 Act, it upheld the liability to pay the principal amount plus any interest due under the original contract terms, to be paid within three months.
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