UNION OF INDIA Vs. TARACHAND AGRAWAL

JUDGEMENT

(1.) THE Union of India, representing the Central Railway, has filed this appeal, against the Judgment of the Addl. District Judge, East Nimar, Khandwa at Burhanpur dated 29th September 1970, decreeing the plaintiffs claim for damages for conversion of goods to the extent of Rs. 16,016.

(2.) THE facts, briefly stated are these. On 22 -5 -68 the plaintiff's under for purchase of coal -ash accumulated at the Nandgaon pump -house for a period of one year from the date of the execution of the contract for a sum of Rs. 2,135 by running contract on a lump sum basis was accepted. The estimated quantity of coal -ash was 3,500 c.ft., and the rate settled was Rs. 61 per brass, i.e., 100 c. ft. the plaintiff, accordingly, on 22 -5 -68 deposited an amount of Rs. 2,135 being the price of coal -ash for a year in full, i.e., the period of contract, and also Rs. 213 as security deposit. Thereafter, the parties executed a formal contract dated 15 -6 -68, Ex. D -I, for sale of coal -ash by running contract. The defendant -Railway administration, however, by its letter dated 20 -6 -68 Ex. D -2, cancelled the contract.

(3.) THAT claim of his was repudiated by the defendants. They specifically denied that there was any liability on their part to satisfy the plaintiff's claim as laid and pleaded instead that they were entitled under clause 2 (d) of the agreement to cancel the contract, as the coal -ash was required by the defendants for their own use. It was, however, elicited during the trial by a cross -examination of Narayan Sarwate, P.W. I., Central Railway, Manmad (D.W. 1), on the basis of the records of the Railway administration that during the period in question, out of the total outturn of coal -ash at the Nandgaon pump -house the Railway administration had itself utilised 10,787 c. ft., and the remaining quantity comprising of 15,000 c. ft. and 15,737 c. ft, of coal -ash had been issued to two contractors on the basis of certificates of the Block Development Officer, at the rate of Rs. 61 per brass.