EASTERN COALFIELDS LTD. Vs. RAVI UDYOG

JUDGEMENT

(1.) This is an appeal against the judgment and order dt. June 2, 1992, passed by U.C. Banerjee J. in Matter No. 4821 of 1991. By the said order the learned trial Judge disposed of the writ application with the following directions: The Eastern Coalfields Ltd. shall pay a sum of Rs. 76 lacs to the writ Petitioners, being the admitted value of the work done, within a period four weeks from the date of this order. But since Eastern Coalfields have also noted a claim for damages in the counter -claim the writ Petitioners shall file an Indemnity Bond to the extent of Rs. 50 lacs, in favour of Eastern Coalfields a duplicate copy whereof shall be filed with the Registrar, Original Side, Calcutta, within a period of' two weeks from the date hereof.

(2.) It is, however, clarified that the payment of the writ Petitioner shall be released by Eastern Coalfields Ltd. within Indemnity Bond. The Eastern Coalfields Ltd. however, would be at liberty to institute such proceeding or proceedings, as they may be advised for recovery of their dues, if any, in accordance with law. In the event, however, such proceeding initiated within a period of three months from the date hereof the Indemnity Bond shall remain valid until after the disposal of the said proceedings, and in that event the writ Petitioner is directed to keep the Bond alive till the disposal of such proceedings.

(3.) In the event no such proceeding in initiated within the period of three months as noted above; the Indemnity Bond directed above, shall stand automatically discharged.