B.S.C. CONSTRUCTION CO. ENGINEERS AND CONTRACTORS AND OTHERS Vs. FOOD CORPORATION OF INDIA (THR POA HOLDER : CHARANJI AASHAT

JUDGEMENT

(1.) The appellants, original defendants, have challenged the judgment and decree passed by the learned Principal Senior Civil Judge, Panchmahals at Godhra in Special Civil Suit No.10/1992 whereby, a joint and several decree for Rs. 35,89,184.00 along with interest at the rate of 12% per annum from the date of filing of suit till its realisation was passed against the appellants herein, original defendants.

(2.) The respondent, original plaintiff, is a public Corporation registered under the Companies Act, 1956 whereas, appellant no.1 herein, original defendant no.1, is a partnership firm and the rest of the appellants are its Partners. The respondent-Corporation is mainly engaged in the sale and purchase of food grains through out the country and for the purpose of storage of food grains, the respondent-Corporation constructed its own Godowns or used to hire Godowns at places where it does not have its own Godowns. For constructing its own Godown at FSD Bhomaiya, Godhra, the competent authority of respondent-Corporation invited Tender for constructing a 25,000 MT capacity convertible plinths with roads, drains and culverts.

(3.) The appellant-Company filled up the Tender and as the Bid given by it was found to be the lowest, it was selected for the work. Work order dated 16.01.1989 was issued in favour of respondent no. 1 Company. Earlier, the said work was given to one M/s. Sorath Construction Company. However, the said Company left the work midway on account of some dispute. Therefore, fresh Tender was issued to complete the remaining work, at the cost of Rs. 39,46,531/- plus rise of 21% on the estimated cost.