PREM NATH MOTORS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THE plaintiff has filed the present suit for recovery of Rs. 22,62,713.30.

(2.) THE facts of the case are that on 11.7.1963 plaintiff and defendant entered into a contract bearing No. 4606/1/Alwar/63 -64/ST3 at Delhi for supply by the plaintiff of vehicles to the defendants for training military personnel at Alwar from 15.7.1963 to 31.3.1964. The contract specified the type and minimum and maximum number of various types of vehicles to be supplied. In terms of the contract the plaintiff was to deposit a security deposit, which plaintiff deposited in the form of a Fixed Deposit Receipt of amount of Rs. 1,39,700/ - in the name of the defendant, As per the plaintiff the special conditions stated the rate of hire charges of various types of vehicles for 'duty for eight hours in a day or night or partly by day or night'. The plaintiff relies on para 5 and 6 of the plaint, which is reproduced as under:

(3.) THE plaintiff protested against the underutilization of the vehicles. Plaintiff wrote letters Ex. P -l dated 18.7.1963. By Ex. P -5 dated 2.8.1963 the defendant acknowledged the plaintiffs letter of 29.7.1963 and stated that necessary action was being taken and that the plaintiff should expect further communication on the subject. Plaintiff again reiterated its demand vide Ex. P -6.dated 3.8.1963, Finally by letter dated 31.8.1963 Ex. P -8 the defendant gave notice under Clause 5 of the contract reducing the number of vehicles for the month of October, 1963 to half the vehicles originally stipulated. By Ex. P -9 dated 6.9.1963 the defendant stated that points raised by the plaintiff in letter 29.7.1963 had been fully investigated. The defendant rejected all the points by stating that adequate notice was given to the plaintiff as per the contract for reducing/not utilizing the vehicles, whereas according to the plaintiff, except for notice dated 31.8.1963 (Ex. P -8), no such notice was given.