AUDHYOGIK GASES P LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal has been filed against the impugned judgment and order of the District Judge, Jhansi dated 24.1.1998 in Misc. Case No. 242 of 1995.

(2.) Heard learned counsel for the parties.

(3.) The dispute relates to the payment of price variation of 6 running contracts of supply of Dissolved Acetylene (D.A.) Gas claimed by the appellant from the respondent Railways. The facts of the case are that the Deputy Controller of Stores, Central Railway Workshop, Jhansi gave tenders for supply of D.A. gas to the claimant. In response to the same the claimant made an offer dated 29.9.1986 for supply of the gas. In the contract entered into between the parties there was a price variation clause which stated that the price of D.A. gas will decrease/increase by Rs. 6 cubic metre for every decrease/ increase of Rs. 15 per metric ton in the average cost of procurement of calcium carbide. Any decrease in rate of D.A. gas will be refunded by the appellant within 15 days of finalisation of its accounts and any increase in the rate of D.A. gas shall be paid to the appellant within 15 days from the date of submission of its bill. The offer was based on Rs. 8,600 per cubic metre on cost of procurement of calcium carbide.