O N G C Vs. NOBEL STEEL

JUDGEMENT

(1.) AS both the appeals arise from common judgment and decree passed by the Lower Court, they are being considered simultaneously. In the present judgment, for the sake of convenience, the parties shall be referred to as per their original status of the plaintiff or the defendant, as the case may be, since there are two Cross Appeals, one is by the original defendant being First Appeal No. 2972 of 2000 and the another is by the plaintiff being First Appeal No. 1635 of 2001.

(2.) SHORT facts are that the original defendant invited tender for purchase of used/obsolete Drill pipes of various specifications. The plaintiff, in response to the said tender notice, submitted its offer. Ultimately, the offer of the plaintiff was accepted and the earnest money of the tender amount as per the conditions of tender was treated as the Security Deposit. Total amount was approximately Rs.32,65,500.00, since the material was about 10000 meters Drill Pipes and agreed price was Rs.311.00+taxes per meter. As per the plaintiff, after physical verification, it was found that the goods did not confirm to the description made in the tender notice as well as in the acceptance letter dated 19.11.1988, therefore, the plaintiff did not perform contract after performing part of it. The plaintiff demanded refund of the amount of security deposit but the same was also not refunded by the defendant and the plaintiff was conveyed that the said security deposit is forfeited on account of non- performance of the contract by the plaintiff. There was correspondence between the parties and ultimately, the plaintiff filed the suit being Civil Suit No. 1818 of 1989 before the City Civil Court at Ahmedabad for recovery of the amount of Rs.26,06,000.00 which included the refund of the security deposit of Rs.1,56,000.00.

(3.) WE have heard the learned Senior Counsel Mr.R.R. Marshall appearing for the O.N.G.C. - original defendant in the respective appeals and learned Advocate Mr. K.G. Sukhwani appearing for the Nobel Steel � original plaintiff in both the respective appeal. We have considered the judgment and the reasons recorded by the learned Judge and the record and proceedings.