DISTRICT FOREST OFFICER SALEM DIVISION Vs. LAXMI IMPEX

JUDGEMENT

(1.) THE above appeals are directed against the common order of the learned Judge dated 21. 12. 2006 made in W. P. Nos. 16121 and 16122 of 2002, by which the learned Judge allowed the writ petitions filed by the respondents herein to the extent that the demand of demurrage is not legally payable by the writ petitioner.

(2.) THE learned Judge has relied upon the judgment of this Court in W. P. Nos. 17292 of 1993 and 797 of 1994 (Sree Mahalakshmi Flour Mills vs. State of Tamil Nadu) dated 15. 06. 2001, by which the clause regarding the payment of demurrage in the tender conditions in that case, which is identical to the clause in the present case, was considered. The said clause is a follows: " If he fails to take delivery of the wood after all the amounts due on such wood are paid within the 'voidah', the wood will be kept in double lock or single lock as the case may be until such time as agreed to take delivery thereof and he shall be liable to pay a demurrage of Rs. 30/- per tonne per day for each day the wood so kept in double lock or single lock beyond 75 days. "

(3.) ON facts, it is clear as it is submitted by the learned counsel for the appellant that the auction for the sale of 2 M. Ts. of sandalwood took place on 24. 01. 2002 and as per the clause in the tender conditions, the writ petitioners paid 20% of EMD. The sale was confirmed by order dated 04. 02. 2002 which was served on the writ petitioners on 09. 03. 2002. As per the terms of the tender, after confirmation, within 15 days, another 30% of the amount had to be paid and the remaining amount of 50% had to be paid within 45 days, but the respondent/writ petitioners did not pay the said amount within the time. The learned counsel for the appellant submitted that the respondents paid the entire amount on 08. 05. 2002 and thereafter, they took delivery on 11. 05. 2002 and for the period from 08. 05. 2002 to 11. 05. 2002, the demurrage charge has been imposed on the writ petitioner/respondents.