COAL INDIA LIMITED Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) THIS is a second appeal by original defendants. n o.15(a) and 15(b). Respondent no.1 herein was the plaintiff and rest of the respondents were the defendants in the suit. The parties herein after shall be referred to as plaintiff and defendants.

(2.) THE facts giving rise to this appeal are as under ' The plaintiff is a Banking Company. The defendants is a Company which used to run a colliery. Before defendant no.1 was taken over by the Government of India under the Coal Mines Nationalization Act, defendant no.1 was dealing in coal. During the course of his business, defendant no.1. The Ballarpur Collieries Company had obtained credit facility including Clean Demand Endorsed Bills Limit and Usance Bill Limit from the plaintiff. The said limit was from time to time raised and lastly it was raised on 27th September, 1972 to Rs.84,00,000/-. Defendant no.1 used to sell coal to its customers and used to draw a Hundi on the customer through the plaintiff-bank. Said Hundies were being presented for discounting purposes. The plaintiff used to purchase the hundies and make the payment to defendant no.1 immediately on its submission. Thereafter, drawee of the Hundi on accepting the Hundi used to make the payment of bills to the plaintiff. This practice was continued until 1973 when Coal Mines Taking Over of Management Act came into force. Defendant no.1 sold coal to defendant no.16 and defendant no.1 submitted bill and Hundi to the plaintiff-bank on 27/1/1973. The said amount of the bill was Rs.19,091.12. Upon presentation of the Hundi to the plaintiff-bank, the plaintiff discounted the Hundies in the account of defendant no.1. Defendant no.16 accepted the Hundies on 9/2/1973. Defendant no.16, however, failed to make payment to the plaintiff. It is alleged that defendant no.16 failed to make payment to defendants no.15(a) and (b). The plaintiff had also laid the claim before the Commissioner under Section 20 of the Coal Mines Nationalization Act. The said claim of the plaintiff was rejected. The plaintiff contends that all the defendants i.e. 1 to 16 are liable to pay the amount of the Hundies which was received by defendant nos.15(a) and (b) and which has not been paid by the defendant No.15(a) and (b) to the plaintiff.

(3.) DEFENDANT no.15 (a) and (b) had also resisted the suit and contended that they are immune from any action in the court of law. It is their contention that they alone were entitled to recover money which was due to defendant no.1 after coming into force of the two Acts namely (The) Coal Mines (Taking Over of Management) Act, 1973 and (The) Coal Mines (Nationalization) Act, 1973.