MARUTI UDUOG LIMITED Vs. HI Q INTERNATIONAL

JUDGEMENT

(1.) The plaintiff has filed a suit under Order XXXVII CPC against the defendant for the recovery of Rs. 7 lacs arising out of a contract between the parties for the supply of what is called REP licences. The case of the plaintiff can be stated briefly in the following terms.

(2.) There was a tender issued by the plaintiff calling upon the interested persons for the supply of REP licences. In response to that tender the defendant by fax message dated 10.4.1991 offered to sale REP licences (non-flexible) at the value of Rs. 3 crores at a premium of 12.75% subject to the licence being valid upto 3-1/2 months. The defendant undertook to deliver the licences within 7 days as required by the plaintiff. On the same date, 10.4.1991, the plaintiff accepted the offer made by the defendant and directed the defendant to supply the REP licences (nonflexible) so as to reach the plaintiff on or before 17.4.1991. It is made clear in the letter that if the supply was not made by 17.4.1991 the plaintiff would be at liberty to forfeit the earnest money/security deposit without notice to the defendant.

(3.) On the same date, 10.4.1991 the defendant sent a cheque of Rs. 5,73,750.00 in favour of the plaintiff drawn on State Bank of Mysore, Whites Road Branch, Madras. This amount represents the earnest money/security deposit at 15% of the premium amount (12.75%) on Rs. 3 crores. The defendant also gave him validity of 3 months.