Oil & Natural Gas Commission of India. Vs. Western Company of North America
EmailAppeal: Civil Misc.Petition No.6164 of 1987.
Petitioner: Oil & Natural Gas Commission of India.
Respondent: Western Company of North America
Apeal: Civil Misc.Petition No.6164 of 1987.
Judges: M.P.THAKKAR & K.N.SINGH, JJ.
Date of Judgment: Mar 13, 1987
Head Note:
INDIAN ARBITRATION ACT, 1940
Further directions to clarify the Court’s order dated January 16, 1987 (JT 1987 (1) S.C.160) – Payment of income-tax – Computation of interest – Interest should be computed with the expiry of 30 days from the date of receipt of invoice.
JUDGEMENT:
ORDER
1. Having considered the affidavits and the material produced by both the sides, and having taken into account the submissions urged by counsel, we clarify the order passed by us on January 16, 1987* by issuing further directions in the following terms:-
1.The sum of Rs.57,08,214/- claimed by the Income-tax Department as per letter dated February 23, 1987 (Annexure ‘D’ at page 51 of the Paper Book) may be paid by the ONGC directly to the competent authority on behalf of the Western Company under protest and without prejudice to the rights and contentions of the Western Company and the said amount may be deducted from the amount which we have directed ONGC to remit to the Western Company.
2.The Income-tax in regard to the amount which we have directed to be remitted to Western Company may be deducted at the rates specified in the letter of the Inspecting Assistant Commissioner of Income-tax, dated February 12, 1987 also under protest and without prejudice on behalf of the Western Company and the same may be deducted from the amount we have directed the ONGC to remit to Western Company.
3.So far as the question of interest is concerned, interest should be computed with the expiry of 30 days from the date of receipt of the invoice, and the payment will be without prejudice to the contention of the ONGC that interest is not payable at all and it will be subject to 3(b).
3.(b) The Western Company will file an undertaking within four weeks from today in this Court that in case the ONGC ultimately succeeds, the said amount will be refunded to ONGC.
4.After making adjustments in respect of the aforesaid matters the remaining amount shall be remitted as per our earlier directions within four weeks from today.
2. Subject to the aforesaid clarifications, our order dated January 16, 1987 will remain undisturbed in all other respects.
3. C.M.P. is disposed of accordingly. Liberty to apply.
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*See JT 1987 (1) S.C.160
1. Having considered the affidavits and the material produced by both the sides, and having taken into account the submissions urged by counsel, we clarify the order passed by us on January 16, 1987* by issuing further directions in the following terms:-
1.The sum of Rs.57,08,214/- claimed by the Income-tax Department as per letter dated February 23, 1987 (Annexure ‘D’ at page 51 of the Paper Book) may be paid by the ONGC directly to the competent authority on behalf of the Western Company under protest and without prejudice to the rights and contentions of the Western Company and the said amount may be deducted from the amount which we have directed ONGC to remit to the Western Company.
2.The Income-tax in regard to the amount which we have directed to be remitted to Western Company may be deducted at the rates specified in the letter of the Inspecting Assistant Commissioner of Income-tax, dated February 12, 1987 also under protest and without prejudice on behalf of the Western Company and the same may be deducted from the amount we have directed the ONGC to remit to Western Company.
3.So far as the question of interest is concerned, interest should be computed with the expiry of 30 days from the date of receipt of the invoice, and the payment will be without prejudice to the contention of the ONGC that interest is not payable at all and it will be subject to 3(b).
3.(b) The Western Company will file an undertaking within four weeks from today in this Court that in case the ONGC ultimately succeeds, the said amount will be refunded to ONGC.
4.After making adjustments in respect of the aforesaid matters the remaining amount shall be remitted as per our earlier directions within four weeks from today.
2. Subject to the aforesaid clarifications, our order dated January 16, 1987 will remain undisturbed in all other respects.
3. C.M.P. is disposed of accordingly. Liberty to apply.
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*See JT 1987 (1) S.C.160
