Payable - Definition - Law Dictionary Home Dictionary Definition payable

Definition :

Payable, 'payable' generally means that which should be paid, New Delhi Municipal Committee v. Kalu Ram, AIR 1976 SC 1637 (1639): (1976) 3 SCC 407: (1976) Supp SCR 87.

The expression 'the full amount payable by the foreign buyer in respect of the goods' occurring in cl. (b) would mean merely the total amount which is due from the foreign buyer in respect of the goods actually exported; and what would be due from a foreign buyer has to be merely the price which he has been agreed to pay and not any fanciful, unreal or inflated price which the exporter may choose to falsely incorporate in the invoice with any ulterior motives. The foreign buyer cannot, by any stretch of imagination, be held to be liable to pay any amount over and above the price which he has promised to pay for the goods received by him and any difference between that price and the price given in the invoice can therefore not have the attribute of having become 'payable' by him, Director, Enforcement Directorate, Ministry of Finance v. K.O. Krishnaswamy, AIR 1979 SC 1969 (1971): (1980) 1 SCC 280: (1980) 1 SCR 1092. [FERA. 1947, s. 12(2)]

The word 'payable' is a descriptive word, which ordinarily means 'that which must be paid or is due, or may be paid' but its correct meaning can only be determined if the context in which it is used is kept in view. The word has been frequently understood to mean that which may, can or should be paid and is held equivalent to 'due', J.K. Synthetics Ltd. v. C.T.O., AIR 1994 SC 2393: (1994) 4 SCC 276.

The word payable must mean that will become payable, Durga Prosad Khaitan v. Commercial Tax Officer, AIR 1956 Cal 596 (598).

The word 'payable' may signify an obligation to pay at a future time but when used without qualification in payable at once, S.P.L.P. Narayanan Chettiar v. M.A.R. Annamalai Chettiar, AIR 1961 Mad 313.

Means an obligation to pay at a future time as well as an obligation to pay at once, MRF Ltd. v. Assistant Commissioner, (1995) 1 Ker LT 809.

Means deliverable in performance of an obligation, i.e. actual payment was demandable by the person entitled, Sridevi v. Krishnan, 21 M 105.

Means that which must be paid or is due or may be paid, J.K. Synthetics Ltd. v. Commercial Taxes Officer, AIR 1994 SC 2393.

Means what should be paid and legally recoverable, New Delhi Municipal Committee v. Kalu Ram, AIR 1976 SC 1637: (1976) 3 SCC 407. [Public Premises (Eviction of Unauthorised Occupants) Act, 1958, s. 7]

Payable, naturally refers to the moment when the duty to pay arises. Thus the premium was not payable when the contract was made but 'on case basis to London underwriters within 90 days of attachment, Heath Lembert Ltd. v. Sociedad de Coretaje de Seguros, (2004) 1 WLR 2820.