YOGENDRA KUMAR JALAN Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner submitted a tender, in response to an Invitation to Tender dated 19-10-1968, in respect of the supply of 2,580 Kgs. of rivets brass spear point, in inch sizes of 3/4", at the rate of Rs. 13.18 per Kg. and offered to complete the supply by the end of March, 1969. The order had to be placed by the second respondent by 31-12-1968. In other words, the delivery period was to be 3 months from the last date by which the tender could be accepted by the office of the Director of Supplies & Disposals, Kanpur (Ministry of Foreign Trade and Supply). By his letter dated 7-4-1969 (copy of which is R. 8 to the return filed by the respondents) the petitioner had agreed to keep the offer open up to 1-5-1969 as described by the Director of Supplies & Disposals, Kanpur by his Letter dated 1-4-1969. The offer of the petitioner was accepted on 1-5-1969, the tenders having been opened on 30-11-1968. A registered letter containing the said acceptance was duly posted on the same day i. e. on 1-5-1969 to the petitioner. A telegram was sent by the petitioner bearing date 1-5-1969 to the Director of Supplies & Disposals, Kanpur quoting rate of Rs. 14.28 per Kg. instead of Rs. 13.18 per Kg. quoted in the tender. It was mentioned in the telegram, a copy of which was also sent by post, that the petitioner was compelled to increase the rate on account of heavy increase in prices of raw materials and also stating that the validity of their offer expired on 1-5-1969. This telegram was received by the Director of Supplies & Disposals, Kanpur on 2-5-1969.

(2.) The contract in this case is governed by the conditions of the contract in the Form DGS&D-68 (Revised), Cl. 18 of which provides that "whenever any claim for payment of a sum of money arises out of or under the contract against a contractor, the purchaser shall be entitled to recover such sum by appropriating in whole or in part, the security, if any deposited by the contractor and for the purpose of aforesaid, shall be entitled to sell and/or realise securities forming the whole or part of any such security deposit. In the event of the security being insufficient, the balance and if no security has been taken from the contractor, the entire sum recoverable shall be recovered by appropriating any sum then due or which at any time thereafter may become due to the contractor under the contract or any other contract with the purchaser or the Government or any person contracting through the Secretary, if such sum even be not sufficient to cover the full amount recoverable the contractor shall on demand pay to the purchaser the balance remaining due."

(3.) The Director of Supplies & Disposals, Kanpur having made re-purchase the petitioner was informed, vide the impugned letter dated 10th November, 1970, by the Assistant Director (Supplies) (Copy of which is Annexure P. 9 to the petition) that a sum of Rs. 9,080.00 was due from the petitioner in the matter of re-purchasing the stores which the petitioner had undertaken to supply and that the said amount had to be deposited in the Treasury by 30-11-1970.