R K INDUSTRIES Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner seeks a direction to the respondent authorities for payment of interest on the cheque amount.

(2.) A brief statement of facts essential for the disposal of this writ petition may be indicated. The petitioner is a manufacturer and supplier of hume pipes. He had made supply of hume pipes to the State of Bihar through respondent no.4, in March 1992, in pursuance of the supply order dated 25.3.1992. Cheque dated 31.3.1992, for Rs.81,008/-, was issued to him and was received by him on that date itself, being the last date of the financial year. According to the petitioner, he made attempts to have the same encashed by presenting it before the concerned treasury but could not be encashed because of heavy rush of cheque-holders which the treasury was unable to handle. Consequently the cheque could not be encashed which the petitioner returned to respondent no.4 on 2.4.1992. After persistent efforts for a period of little less than 11 months, respondent no.4 issued cheque dated 23.2.1993 for the like amount which has been encashed. The present writ petition has been preferred for payment of interest for a period of 10 months and 22 days along with costs.

(3.) Learned counsel for the petitioner submits that he, being a businessman, arranges his finances from the bank and other sources for which he has to pay interest. Unless the petitioner is paid for supply of the goods in time, he would suffer losses and the entire profit earned by the supply would be eaten away by the interest he has to pay to his lender. He submits that there was no justification for the authorities to issue cheques on the last date of the financial year on which date the treasuries of the Government of Bihar are proverbially overburdened. He has relied on the following orders of one of us (S.K. Katriar, J.), sitting singly: <DJG>(i) Order dated 1.3.2000, passed in C.W.J.C. No. 4927 of 1999 (Ramdeo Singh Vs. The State of Bihar and others), since reported in 2000 (2) P.L.J.R. 235. (ii) Order dated 28.3.2000, in C.W.J.C. No.5704 of 1999 (M/s. Bharat Agriculture and Mechanical Engineering Co. Vs. State of Bihar and others), 2000(3) P.L.J.R. 126.</DJG>