BRITISH MACHINERY SUPPLIES COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) The appellant is an actual user of various items of steel as well as of G. P. sheets/coils. The import of G. P. sheets/coils under the policy of the government of India is canalised through the Steel Authority of India Limited ('sail'). On 14/01/1981, the appellant applied to the SAIL for the supply of 600 metric tonnes of G. P. sheets/coils of 0. 45 mm gauge. On 17/03/1981, the SAIL registered the demand of the appellant for only 300 metric tonnes of G. P. sheets/coils. On 13/11/1981, the SAIL sent a telegram offering the appellant 62 metric tonnes of G. P. sheets/coils of 0. 45 mm thickness subject to the appellant's acceptance reaching it before 19/11/1981, and also required the appellant to open an irrevocable letter of credit. By its telegram of 16/11/1981 the appellant conveyed its acceptance and on 26/11/1981 opened an irrevocable letter of credit in favour of the SAIL for a sum of Rs. 64,000. 00. This demand of the appellant for the year 1980-81 was to be supplied latest by 31/03/1981.

(2.) According to the appellant, during the period from April 198 1/11/1981, ignoring the claim of the appellant, the SAIL supplied im- ported G. P. sheets/coils to some parties but did not supply any quantum of G. P. sheets/coils to the appellant.

(3.) On 16/12/1981, a meeting of the Pricing Committee resolved to increase the price of the imported G. P. sheets/coils by about Rs. 800. 00 per metric tonne. This decision of the Pricing Committee was communicated to the SAIL on 8/02/1982.