M/S STERLING HIDES AND SKINS INDIA (P) LTD. Vs. U.P. STATE LEATHER DEVELOPMENT AND MARKETING CORPORATION ETC.

JUDGEMENT

(1.) The petitioner is a private limited company having its factory at Leather Complex Unnao where it manufactures special leather from hides for the purpose of export. The petitioner obtained various type of facilities from the U.P. Suite Leather Development and Marketing Corporation, which is a Corporation owned and controlled by the State Government.

(2.) In the year 1982 , the petitioner and respondent No. 1 entered into an agreement by virtue of which the petitioner was permitted to use all the machines at the common facility centre at Unnao for a period of one year starting from 1st Dec., 1982. A formal agreement was executed on a stamp paper. The petitioner was allowed to use the shed on payment of Rs. 32,500/ - per month, half of which had been paid in advance. The petitioner also used the machines from the common facility centre against the payment as stipulated in Annexure 1.

(3.) Up to Sept. 5, 1983, the petitioner admitted to have availed the facility aforesaid. But this period, due to strike in die Corporation, the petitioner could not avail the facility for some days. Consequently, it applied to respondent No. 1 for adjustment of the charges from the bills which had been submitted to it by respondent No. 1. Respondent No. 1 denied the right of the petitioner to get reduction claimed. Ultimately, on 5 Sept., 1983, the petitioner cancelled the contract entered into between him and respondent No.1.