STATE OF HIMACHAL PRADESH Vs. HIMACHAL RANG UDYOG

JUDGEMENT

(1.) The present suit has been filed by the two plaintiffs for the recovery of Rs. 6,27,143.81 p. detailed as under: - (a) Amount due to non -payment of bills for the supply resin and turpentine. Rs. 1,70,128.66 p. (b) Interest on such amount at the rate of 18 per cent per annum from 29.3.1974 to 30.6.1988 (the date of suit.) Rs. 4,36,786.OOp. (c) Amount due on account of sales -tax at the rate of 6 per annum due to non -receipt of D1 forms. Rs. 10,382.40 p. (d) Interest on the amount of sales -tax at the rate of 18% per annum. Rs. 14,950.75 p. Total Rs. 6,27,143.81 p. The plaintiff No. 1 is the State of Himachal Pradesh. While plaintiff No. 2 is the Himachal Pradesh State Forest Corporation. They are hereinafter being referred to as the "first plaintiff and "second plaintiff", respectively. The suit has been filed by both the plaintiffs through Managing Director of the second plaintiff.

(2.) The first plaintiff was running two resin and turpentine factories, respectively at Bilaspur and Nahan and was dealing in the business of resin and turpentine. The defendants had purchased resin and turpentine on 29.3.1974 vide four bills worth Rs. 1,70,128.66 p. Such amount has not been paid by the defendants inspite of repeated demands.

(3.) On and with effect from 1.4.1974, the first plaintiff constituted a Corporation known as Himachal Pradesh State Forest Corporation, a company registered under the Indian Companies Act, 1956, and on the creation of such Corporation, that is, the second plaintiff, the management, control and business of the two resin and turpentine factories at Bilaspur and Nahan was transferred to it vide notification No. 10 -26/72 -SF dated 25/26.3.1974. However, by the same notification, the first plaintiff retained the right to recover the amounts due to it from various parties till 31.3.1974.