METAL DISTRIBUTORS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Plaintiff/appellant filed the suit for recovery of Rs. 1,92,292.14 paise in this Court, being Suit No. 417 of 1968. The case of the plaintiff was that the Directorate General of Supplies and Disposal (DGS & D for short) issued a tender on the November, 1964 for supply of 1045 metric tonnes (M.T.) of copper. The plaintiff iad offered to supply 1000 M.T. of this material which offer was accepted by DGS&Don 24/11/1964.It is an admitted case that the supply was required or army and DGS&D wanted an early supply. The plaintiff had quoted higher price or 500 M.T. shipment during January, 1965 and remaining 500 M.T. during february, 1965. Its lowest offer was at the rate of Rs. 5,557.84 paise per M.T. when the shipment was to made at a later date in June/July, 1965. DGS&D, while accepting the offer, agreed to pay higher rates demanded by the plaintiff during amuary-February, 1965 shipment as it was in need of early supply. However, in me Contract between the parties, following special condition was attached:

(2.) The defendant/respondent made the payment against the aforesaid sup- plies. However, the payment was made at the lesser rate in view of the special condition in the Contract because as per the defendant, shipment was not made during January-February, 1965 and, therefore, the plaintiff was not entitled to the higher price meant for shipment during January-February, 1965. Due to late shipment the goods were received by the defendant much belatedly. In this way payment made was lesser by Rs. 1,46,481.00 than the price agreed for shipment during January-February, 1965. Further,ther, after taking the delivery the defendant informed the plaintiff that the consignment was short to the extent of 190 ingots and because of this necessary endorsement for recovery of Rs. 45,811.14 paise had been made on the inspection note sent along with the intimation dated 27/12/1965 regarding short supply. Thus the grievance of the plaintiff was that the two deductions effected by the DGS&D namely Rs. 1,46,481 .00 under the price prefer- ence clause and Rs. 45,811.14 paise for alleged short supply added upto Rs. 1,92,292.14 paise. After serving a notice under Section 80 of the Code of Civil Procedure suit for recovery of this amount was instituted.

(3.) The defendant filed written submission contesting the claim of the plaintiff. After the pleadings, the Court framed the following issues: