O.N.G.C. And Anr vs Assn. Of Natural Gas Consuming Inds. And ...

The Supreme Court addressed the issue of interest on delayed payments under contractual agreements between the Oil & Natural Gas Commission (ONGC) and the respondents regarding the supply of natural gas. The Court upheld the contractual terms specified in Clause 5.02, which mandated interest on delayed payments at a rate higher than the cash credit facility rate from the State Bank of India. The Court ruled in favor of ONGC, affirming their right to claim interest on the principal amount due following the resolution of the price fixation dispute.