STATE OF RAJASTHAN Vs. INDIAN ALUMINIUM CABLES LIMITED

JUDGEMENT

(1.) This is a tortuous litigation. Two parties are locked in a battle. One party is the State of Rajasthan. They are trying to get a sum of Rs. 16,08,000 from two banks-Canara Bank and Dena Bank. The other party Indian Aluminium Cbles Ltd. are preventing them from getting the money. What I hve to decide is whether the State of Rajasthan should be allowed to hve this money or not. For The sake of brevity I will call the State of Rajasthan as the state. Indian Aluminium Cbles Limited will be called the Company. Canara Bank and Dena Bank will be referred to as the banks.

(2.) Thse are the facts. The State had a project in hand. The proiect was the building of Rana Pratap Sagar and Kota Dams. For this project they wanted a supply of 3130 KMs of 'Panther' Aluminium Conductor (ACSR) Cble. The company agreed to supply.

(3.) On March 31, 1964, the State placed an order with the Company for the supply of Aluminium Conductor at the rate of Rs. 3500 per KM less a rebale of 1-1/2 per cent, that is, Rs. 3447,50 per Kilometer. The agreed total price was Rs. 1,07,90,675. The delivery of the material was to commence from September, 1964 at the rate of 200 KMs per month. Total supply was to be made within 16 months.