NANALAL MADHAVJI VARMA Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This suit had been filed by Nanalal Madhavji Varma against the State of Andhara Pradesh for recovery of a sum of Rs. 62,887 P. interest and costs. It is the plaintiffs case that on 19th of Aug. 1958 the Official Liquidator of the Barasat Basirhat Light Railway Co. (in liquidation) published an advertisement in the Statesman in Calcutta inviting tenders for the purchase of moveable properties of the said company including rails on various terms and conditions. The maximum selling price of the said rails was fixed by the Iron and Steel Controller at Rs. 700/-per ton, Under the said terms and conditions the purchaser was to sell the said according to the directions of the Official Liquidator. Thereafter several tenders and offers were received by the said Official Liquidator and on 6th of Oct. 1958 the plaintiff was accepted and confirmed by this Court as the highest bidder. The Iron & Steel Controller by letter dated 24th Jan. 1959 arranged for supply of second hand rails to the parties specified in a list at a price not exceeding Rs. 700/- per tons ex-stockyard. By letter dated 24th Jan. 1959 the plaintiff was directed by the Iron & Steel Controller to release to the defendant the State of Andhra Pradesh in the name of its Additional Chief Engineer for Electricity p. W. D. Hyderabad division as allottee of 1325 tons of second hand rails of the following kinds: <FRM>JUDGEMENT_167_AIR(CAL)_1982Html1.htm</FRM>

(2.) By letter dated 28th Jan. 1959 ad dressed from Calcutta to the defendants Additional Chief Engineer. Electricity, Hyderabad the plaintiff asked the defendant for confirmation of the said sale and to take delivery of the allotted goods. By letter dated 2nd of Feb. 1959 the defendant through the said Additional Chief Engineer, Hyderabad desired to purchase 890 tons of the said goods which were allotted and released to the defendant of the following kind:-- <FRM>JUDGEMENT_167_AIR(CAL)_1982Html2.htm</FRM>

(3.) The price was agreed to be at Rs. 700/- per ton ex-stockyard to be sent on freight to pay basis and all the materials with the railway receipts were agreed to be sent to the parties. It was agreed that the railway receipts and the bills in duplicate would be presented through the plaintiff's bankers at Vijayawada in the name of the defendant's Superintending Engineer and the entire price would be paid within 14 days from the date of the presentation of the bills and railway receipts through the plaintiff's bankers with sight draft. The other terms and conditions agreed upon by and between the parties would appear from the correspondences referred to by and between the parties. The plaintiff accepted those terms by his letter dated 9th of Feb. 1959.