STATE OF HIMACHAL PRADESH Vs. UNITED HIMACHAL MOTORS

JUDGEMENT

(1.) This judgment will dispose of two Civil Suits -Civil Suit No, 15 of 1982 and Civil Suit No. 16 of 1992, filed by the State of H. P. against M/s United Himachal Motors and four others, for the recovery of Rs. 1,84,8(0 and Rs. 2,78,547 -57 respectively, due to the non -supply of the vehicles by the defendants to it as the common question of law and facts arise in both the suits. Moreover, both these suits were consolidated vide order dated 25th June, 1986 passed by this Court in Civil Suit No 16 of 1982 and consequently, the evidence was recorded in this suit thereafter.

(2.) Defendant No. 1 M/s. United Himachal Motors and Industries Ltd. of which defendants No 2 and 3 are the partners, was the agent and authorised dealer of M/s. Mahindera and Mahindera Ltd., defendant No. 4. Defendant No. 5 was the Manager of defendant No Ts firm at the relevant time.

(3.) The relevant facts are these; that during the year 1978 -79, after observing the code formalities regarding the seeking of approval from the Government for the purchase of vehicles, the Directorate of Horticulture placed orders with defendant No. 1, the authorised dealer of defendant No. 4, having its Branch office at Mandi for the supply of three pick -up vans and three jeeps of Mahindera and Mahihdera Make. The plaintiff after obtaining the quotations and as per the terms and conditions of defendants No 1 and 4 paid hundred per cent of the costs of the vehicles to the firm through bank -drafts No. 313915 and 313861 respectively in the sum of Rs 1,80,873,0" and Rs. 1,20,000 respectively in the name of defendant No, 1 - The said drafts were encashed by defendant No. 1, Civil Suit No. 15 of 1982 pertains to the recovery of the principal amount as also interest thereupon with respect to the supply of three jeeps whereas Civil Suit No. 16 of 1982 pertains to the recovery of the principal amount and interest with respect to the supply of three diesel pick -up vans.