STATE OF H P Vs. FRIENDS AND COMPANY

JUDGEMENT

(1.) This is an appeal filed by the appellant/State of H.P. under Section 96 of the Code of Civil Procedure against the judgment and decree passed by the learned Single Judge, dated 8.9.2008, vide which the suit of the respondent was decreed for recovery of Rs.7,15,376/-, alongwith interest at the rate of 6% per annum.

(2.) Briefly stated the facts of the case are that the respondent (hereinafter also referred to as the plaintiff) filed a suit for accounts and for recovery of Rs.18,05,000/- with future interest at the rate of 18% per annum as against the appellants (hereinafter also referred to as the defendants). The plaintiff firm had been working as forest lessee and had purchased in an open auction forest lot No.6/81-83 in Chamba Circle for a consideration of Rs.11,01,000/-. The plaintiff had deposited an amount of Rs.1,10,100/-as security for exploitation and conversion of standing trees into scants/logs. An agreement was executed in between the parties on 13.8.1981 and the plaintiff converted the marked trees into scants/logs. The period of lease was two years upto 31.3.1983 but it was extended upto 31.1.1984.

(3.) The plaintiff allegedly converted the trees into 25600 scants of different sizes/species, which were floated into two Ghals. Only 25055 scants of different sizes and species were caught at catching point and taken into possession and stacked at boom head. The remaining scants were allegedly lost during Ghal operation as river loss. On payment of proportionate royalty, the plaintiff was permitted to lift 14520 scants for which the export permit was issued. According to the plaintiff, after sending the scants, which were permitted to be taken away by the plaintiff under export permit, balance 10536 scants remained stacked at the boom head. It was alleged that 10536 scants remained in possession of defendant No.1 and they were liable to account for these scants. The plaintiff firm alleged that it learnt that instead of 10536 scants, only 5005 scants were available at the boom head and the remaining scants were either misappropriated or stolen with the connivance of the Forest Department. The price of 10536 scants was assessed at Rs.19,80,605/- and after adjusting the amounts, the plaintiff claimed a sum of Rs.18,05,000/- from the defendants.