LAWS(DLH)-2011-10-114

HIMACHAL PRADESH STATE ELECTRICITY BOARD Vs. SUMER CHAND

Decided On October 24, 2011
HIMACHAL PRADESH STATE ELECTRICITY BOARD Appellant
V/S
M/S Sumer Chand Respondents

JUDGEMENT

(1.) APPELLANT has challenged the judgment and decree dated 22.02.2000 passed by the learned Single Judge dismissing the suit filed by the appellant against the respondent. Appellant filed a suit claiming a sum of Rs.2,66,400.00 from the respondent being the loss suffered by it due to failure of the respondent to supply the goods as per the stated concluded contract between the parties.

(2.) THE appellant invited offer as per tender No.28 in terms of the general conditions of the contract detailed in para No. 3 of the plaint for supply of galvanized mild steel tubes with the schedule of requirement and dispatch as mentioned therein on 19.06.1973. Last date for submission of tender was 23.07.1973. On 23.07.1973 the respondent submitted offer along with a cheque in the sum of Rs.5,000.00; by way of earnest money. On 18.08.1973 the appellant accepted the offer made by the respondent in respect of pipes of different sizes but at different rates mentioned therein. Thereafter supply order was placed on the respondent on 18.08.1973 itself. In continuation of the said order the appellant wrote a letter dated 31.08.1973 giving details of material, delivery and other terms and conditions as noted in para No.6 of the plaint. As the appellant did not receive any reply, another letter dated 08.10.1973 was sent to the respondent asking it to acknowledge the receipt of the said supply order and also to execute a contract which was only a formality. Respondent replied by sending letter dated 08.10.1973 repudiating the supply order, which was received by the appellant on 18.10.1973. By this letter, the delivery was repudiated on the ground of deviations in the conditions of the contract.

(3.) CASE of the respondent before the learned Single Judge was that no valid contract came into existence between the parties. There was no unconditional acceptance of the offer by the appellant. The respondent filed a counter-claim claiming earnest money tendered along with interest.