VALLABH ALLOYS (PRIVATE) LIMITED Vs. HIMACHAL PRADESH FINANCIAL

JUDGEMENT

(1.) THIS is an appeal filed by the appellant against the judgment and decree passed by Justice R.L. Khurana, dated 23.5.2000, whereby he had partly allowed the claim of the appellant for recovery of Rs. 1,01,315/ but had dismissed the claim of the appellant for recovery of a sum of Rs. 4,60,000/ .

(2.) BRIEFLY stated the facts of the case are that the appellant as plaintiff filed a suit for the recovery of Rs. 5,85,491/ along with interest as against the respondent who was impleaded as defendant. The allegations made by the plaintiff were that the plaintiff is a company and defendant had advanced some loan to M/s. Himachal Concast Pvt. Limited, Nalagarh, who had allegedly defaulted in the payment of the a aforesaid loan. On account of the defaults made by the said company, the defendant took over the assets of the aforesaid company and advertised for the sale of the aforesaid assets in which it was mentioned that there was installed an induction furnace of the capacity of 3240 M.T. Accordingly, certain quotations were sent to defendant and plaintiff also sent their quotations. Thereafter, certain parties, including the plaintiff, were called for negotiations. The final negotiations were held on 23.5.1995, when the plaintiff company offered to purchase the unit for 46.00 lacs and defendant informed the plaintiff company that its bid for Rs. 46.00 lacs for the purchase of the aforesaid industrial concern on 'as is where is basis' in terms of the negotiations held on 23.5.1995 has been accepted and demanded a further sum of Rs. 3.10 lacs. Plaintiff had earlier deposited a sum of Rs. 1.50 lacs.

(3.) THE second part of the allegations made by the plaintiff was in regard to sale of unit known as M/s. Pappi Oil Mills Pvt. Limited which had been taken over by the defendant corporation. The plaintiff made an offer on 2.2.1995 for the purchase of the aforesaid unit for Rs. 4.51 lacs and deposited a sum of Rs. 1.00 lacs as earnest money. He was called by the defendant for negotiations for 22.2.1995 and the quotation of the plaintiff was at No. 2 and quotation of other person was accepted and, therefore, the offer of the plaintiff was deemed to have been rejected. The plaintiff informed the defendant, vide letter dated 18.3.1995, that the offer was valid upto 31.3.1995 and thereafter it would be subject to confirmation of the plaintiff. It was also stated therein that in case the defendants have decided the sale of the aforesaid assets of the company to any other party, then earnest money may be refunded to the plaintiff 2nd offer of Rs. 17.71 lacs made by the plaintiff was valid only upto 31.3.1995. The plaintiff, therefore, claimed the return of the earnest money since his offer had not been accepted. The defendants allegedly sent a telegram to the plaintiff on 24.3.1995 demanding the deposit of the remaining amount by 31.3.1995, by accepting the offer of the plaintiff. The plaintiff pleaded that since his offer was not accepted and the highest bid of another person was accepted and he did not receive the telegram asking him to deposit the balance amount, he was entitled to the refund of Rs. 1.00 lac deposited by him along with interest.