UNION OF INDIA Vs. MODI SUGAR MILLS LIMITED

JUDGEMENT

(1.) The nature of the obligation of a person enjoying benefit of a non-gratitutious act under Section 70 of the Contract Act in the context of the terms and conditions of Government contracts and, the manner and the quantum of proof thereunder by the Government are some questions which have arisen for consideration in this appeal.

(2.) The respondent-contractor entered into ten contracts with the appellant-Union of India on various dates from 20-11-1947 to 7-3-1952. The contractor was to manufacture biscuits and deliver the same to the Government. The Government was to supply to the contractor commodities as raw materials-namely, Atta', 'Sugar' and 'Hydrogenated oil'. These raw materials were to be used by the contractor in making the biscuits. The relevant terms and conditions of the contracts were as follows :-

(3.) Paragraphs 4(d), 6 and 14 of the general conditions are as follows :