S PAUL AND CO Vs. STATE OF TRIPURA

JUDGEMENT

(1.) The petitioner M/s. S. Paul & Co., a registered firm was appointed sole agent for sale of Tripura State Lottery Tickets by a concluded contract of agency in the form of written agreement dt. 23rd Oct. 1982, in modification of an earlier agreement dt. 12th Nov. 1981 and the sole agency continued till the 166th draw of the lottery which was scheduled to be held on Oct. 4, 1983, after which it stood terminated by mutual agreement.

(2.) Clauses 8, 9 and 16 of the said agreement dt. 23rd Oct. 1982 (Annexure 'A' to the writ petition) were as follows : --

(3.) During the material period lottery tickets worth Rs. 27,00,000/- used to be earmarked for each dsaw and 60% of that value is Rs. 16.20 lacs. The petitioner furnished two bank guarantees for Rs. 16.20 lacs each to secure payment of the contractual money to the Government of Tripura, one of which being dt. 21-10-1982 from United Industrial Bank, Ultadanga Branch expired on October 21, 1983. The other bank guarantee was executed by the Branch Manager of the Vysya Bank, Chittaranjan Avenue, Branch, Calcutta for Rs. 16.20 lacs favouring Government of Tripura being Bank Guarantee No. 13/83 dt. 4th July 1983 for one year which has been renewed for another year during the pendency of this case. A copy of the said bank guarantee No. 13/83 is annexure 'C' to the affidavit-in-reply sworn on the 2nd July 1984. Under it the bank guarantees payment of the sale money of the lottery tickets sold by the petitioner firm and "agrees to reimburse the amount of loss, if any, subject to the maximum limit of Rs. 16,20,000/- only."