MANSINGKA INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The plaintiff company is engaged in the manufacture ot Vanusputi. To do so, it is required to use 80% of the vegetable oils allocated by the Union of India (Defendani No.1) and imported and canalised through the Stale Trading Corporation (Defendant No.2). It is claimed by the plaintiff company that on having been allocated 300 metric fonnes of oil at the issue price of Rs.6100.00 per metrie tonne. it deposited the entire price wilh defendant No.2, consequent upon which though defendant No.2 did issue two delivery letters dated February 5, 1979 and March 3. 1979, it supplied in all 119.980 metric tonnes of oil till upto 10th March. 1979 and did not make further supplies till March 16. 1979. This however, was not the and of the mailer. The real trouble started later. It so happened, that as the plaintiff Company had been further allocated 108 metric tonnes of Soyabean oil by the Central Government in the month of August, 1979 il paid Rs-7,80,116.40 to defendant No.2 towards its price. The defendant No.2, however, issued delivery orders for 83.980 metric lonnes of Soyabean oil only and deducted Rs-1,73,449.14 on the "pretext" that when 179.420 metric lonnes of oil out of the earlier two delivery orders was delivered after March 14. 1979 the price of oil had been revised to Rs-7038.84 from Rs.6100.00 per metric tonne. The case of the plaintiff company is that after the issue of the two aforesaid delivery orders, the goods had passed on to the plaintiff making it the owner thereof and as such the delendani No.2 was not entitled to claim price of 179.420 metric lonnes at the rate enhanced with effeet from March 14, 1979 or to deduct the amount from the subsequent independent transaction. Hence its suit for the recovery of Rs.1,73.499.14 paisa besides interest at the rale of 21% per annum making a total of Rs.2,72.177.00 and costs.

(2.) As per defendant No.2, the title of the goods did not pass over to the plaintiff company on the issuance of the delivery orders and that as the price payable was that as prevailing on the date of delivery, the plaintiff company was liable to pay the price of 179.420 metric tonnes at Rs-7250.00 per metric tonne refixed by defendant No. 1 with effect from March 14, 1979. It is alleged that as the plaintiff company did not pay the price difference despite demand, the same was adjusted out of Rs.7,80,116.40 received with regard to the allocation made in the month of August, 1979. In the alternative it is claimed that if the adjustment so made be held to be unjustified, it may be allowed to set off Rs-1,73,499.14 paise with interest thereon at the rate of 21%.

(3.) As regards defendant No. 1, its stand is similar to that of defendant No.2. However, what needs to be stated is that after filing of the written statement, the Union of India took no interest in the proceedings and none was present on its behalf even during final arguments.