FOOD CORPORATION OF INDIA Vs. S D RICE MILLS, JALLALABAD THROUGH SOHAN LAL (DECEASED) THROUGH LRS AND OTHERS

JUDGEMENT

(1.) The appellant-plaintiff is in appeal against the judgment and decree rendered by the lower Appellate Court whereby the appeal of the defendant preferred against the decreetal of the suit for recovery of amount of Rs.2,75,984.30/- with a future interest @ 6% has been allowed, in essence the suit has been dismissed.

(2.) The appellant instituted the suit for recovery of the aforementioned amount on the premise that it has floated a tender on 24.8.1994 for sale of sub standard paddy. In response to the aforementioned tender, the defendant firm submitted a tender wherein it had agreed to lift 500 MT PR-106 of the sub standard paddy @ Rs.370/- PM tonne at Makhu. A sum of Rs.18,000/- deposited by the defendant as security. The sale consideration was to be deposited within a week from the acceptance of the tender but having failed to do so there was breach of the terms and conditions of the tender, thereafter the paddy was dumped as per the orders dated 15.5.1986 and 10.3.1986, and in this process, the appellant FCI had incurred a loss of Rs.2,75,984.36/- which was sought to be recovered from the defendant.

(3.) The aforementioned suit was contested by the defendant. They did not dispute regarding the submission of the tender but it was stated that they did not deposit the cost of the paddy as there was no stock of the stipulated sub-standard quality of PR-106 at Makhu. In fact it was not of worth therefore there was no obligation to take the delivery of the stock which was not of sub-standard quality.