KERALA STATE ELECTRCITY BOARD Vs. CEEBUILD CO. LTD.

JUDGEMENT

(1.) The respondents in this appeal instituted a suit for recovery of money on the basis of a supply contract entered into between them and the appellant herein, the Kerala State Electricity Board. The suit was decreed for 47,63,818/- with interest at 6% per annum from the date of the suit. Aggrieved by the said decree and judgment, the Kerala State Electricity Board Ltd. has preferred this appeal.

(2.) The parties are hereinafter referred to as they were arrayed in the suit. Pursuant to a tender for the supply of 1,41,000 sets of 4-line cross arms with Clamp, Bolt and Nut (CNB), the defendants (hereinafter referred to as "the defendant") issued a purchase order dtd. 5/1/2010 to the plaintiff company, and an agreement was executed between them. As per the delivery schedule under the purchase order, the plaintiff was required to supply 1,41,000 sets of 4-line cross arms with CNB, of which 33,000 sets were to be supplied within 45 days from the date of the purchase order, and the balance at the rate of 36,000 sets every month thereafter. The stipulated period for completion of the supply was 135 days.

(3.) The plaintiff contended that they supplied a total of 58,927 sets up to 25/10/2011, and thereafter, the defendant issued a letter dtd. 16/12/2011 (Ext.A16), directing the plaintiff to complete the supply on or before 30/1/2012. At that stage, the plaintiff approached the defendant and represented that, owing to a continuous labour strike in its unit, additional time was required to complete the supply. Upon acceptance of the request, the plaintiff supplied 5,000 sets on 28/1/2012. The plaintiff was again directed to complete the supply on or before 29/2/2012. However, by letter dtd. 20/4/2012 (Ext.A19), the defendant cancelled the purchase order by terminating the contract.