UNIVERSAL PETROCHEMICALS LIMITED Vs. RAJASTHAN STATE ELECTRICITY BOARD

JUDGEMENT

(1.) These two appeals arise out of two separate judgments and orders passed by the learned Trial Judge while dealing with one proceeding. Both the appeals were heard analogously as the facts are same, subject matter of disputes are similar and the parties are identical. The facts of the case are briefly summarised hereinbelow.

(2.) Universal Petrochemicals Ltd. the appellant herein, entered into two separate contracts for supply of transformer oil to Rajasthan State Electricity Board (herinafter called the Board). In terms of those agreements, the appellant was to furnish bank guarantee for a total sum of Rs. 1,79,200/. The appellant furnished four bank guarantees to cover the said amount. The case of the appellant is that the entire quantity of transformer oil under Contract No. TN 1261 was duly supplied by it by December, 1986 and the same was accepted by the Board without any objection. In respect of the other contract, being Contract No. TN 1312, the appellant contended that the transformer oil was delivered after it was tested and certified in Calcutta by the representative of the Board. Such supply was completed by June, 1988.

(3.) But the disputes and differences arose between the parties on the Board's unauthorised invoking of the bank guarantee alleging that the oil supplied by the appellant is of defective quality.