FOOD CORPORATION OF INDIA REPRESENTED BY THE CHAIRMAN Vs. PREMIER ROLLER FLOUR MILLS LTD BY THE MANAGING PARTNER OF ITS MANAGING AGENTS DHANALAKSHMI & COMPANY, G RAJAGOPALAN

JUDGEMENT

(1.) In these four appeals, a common question arises. The appellant is the Food Corporation of India, Madras, represented by its Chairman.

(2.) As an illustration, the facts in S.A. No, 1682 of 1976 arising from O.S. No. 1115 of 1968 on the file of the II Additional District Munsif, Salem could be taken up for consideration.

(3.) The Assistant Director (Food Clearance) Madras Harbour of the Food Corporation of India admits that he has despatched 600 bags of wheat against the allotment made to the respondent under Invoice No. 4 10 in Railway Receipt No. 144,070 dated 7th May, 1965 to the Salem Junction and the Railway receipt was endorsed over to the respondent to enable them to take delivery of the same. The respondent when they took delivery of the consignment at Salem admittedly found 40 bags to be missing and in order to sustain their case, the respondent obtained what is known as partial delivery certificate marked as Exhibit A.8 in this case to prove such short delivery. The agreement between the appellant and the respondent was that the respondent should mill the wheat delivered over to them by the appellant and convert it into Maida, Sooji, Atta, Bran etc. The contract is evidenced in writing and marked as Exhibit B-l. After the respondent acted in accordance with the contract and converted the wheat contained in the 560 bags as per the understanding, they presented a bill for and towards the charges of conversion. It appears that the Food Corporation deducted the value of 40 bags which were admittedly short delivered to the respondent and consequent upon such deduction, the plaintiff-respondent being aggrieved called upon the Food Corporation of India to pay the value of such goods which were withheld from the conversion charges by the Food Corporation of India.