NEW STANDARD Vs. STEEL AUTHORITY

JUDGEMENT

(1.) THE suit is filed to recover a sum of Rs. 44,65,613. 61 together with interest on Rs. 36,99,287. 87 at the rate of 15% per annum from the date of the suit till payment. The claim falls under two categories. Rs. 7,30,795. 27 is claimed as being the balance price of the goods sold and delivered by the plaintiff to the defendant under an agreement. Rs. 29,68,467. 60 is claimed towards the escalation in price, also as per the suit agreement.

(2.) M/s. Bokaro Steel Limited (BSL), under the Public Sector Iron and Steel Companies (Restructuring) and Miscellaneous Provisions Act, 1978 and in particular, section 4 thereof, stood dissolved and its undertaking stood transferred to and vested in the defendant. Section 23 of this Act provided that all contracts, deeds, bonds and other instruments of whatsoever nature, to which bsl was a party subsisting or having effect immediately before 1. 5. 1978, shall from that day be of full force and effect against or in favour of the defendant and may be enforced as fully and effectively as if the defendant had been a party thereto. The reference in this judgment to the defendant therefore would also include a reference to "bsl".

(3.) BY an order of confirmation dated 19. 4. 1972, the plaintiff agreed to manufacture, sell and supply to the defendant 216 tonnes ingot moulds on the terms and conditions mentioned therein. According to the plaintiff, it has not been paid the entire consideration for the supplies made thereunder. The present suit however does not include the claim in respect of this order.