DUMRAON INDUSTRIES PVT LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) In the present case a preliminary objection has been raised by Mr. P. K. Sahi, learned counsel, appearing on behalf of the State, that as the claim of the petitioner is a money claim, he should be directed to file a suit and should not be allowed to invoke the extraordinary jurisdiction of this Hon'ble Court. Present writ petition was filed on 2-5-1984 and admitted on 7-8-1984. The statutory period for filing the suit has already elapsed since long. This objection should have been taken at the time of admission itself. In view of the facts, as stated above, I am disposing of the aforesaid writ petition on merit, but, this shall be an exception and will not be treated as precedent in other similar cases.

(2.) That the petitioner No. 1 M/s Dumraon Industries Private Limited is a private limited company incorporated under the Companies Act, 1956, and is indulged in manufacturing lanterns and is a registered Small Scale Industry, with the Industry Department, of Bihar, Patna. That on 16-4-1983 an advertisement was published in the Indian Nation, a local newspaper, inviting tenders for supply of one Lakh lanterns for the Adult Education Programme of the Government of Bihar. The said advertisement is appended as Annexure-1 to this writ petition. That pursuant to the said tender the petitioner submitted his application on 29-4-1983 stating therein the price of lanterns to be supplied by them at the rate of Rs. 205.00 per dozen besides other taxes to be levied. A copy of the application dt. 29-4-1983, filed by the petitioner, is appended as Annexure-2 to the writ petition. That subsequently the petitioner's application was accepted and after negotiation the price of Rs. 195.00 per dozen was fixed and was communicated to the petitioner vide letter No. 26/ P 6-56/82-2152 dt. 8-10-1983; written by the Director, Adult Education, Department of Education, Government of Bihar, respondent No. 3. The petitioner accepted the offer of respondent No. 3 by his letter dt. 10-10-1983 with a request that the last day of supply of the lanterns may be extended because of intervening Dasahara Holidays. By letter dt. 12-10-1983 the petitioner No. 1 was directed by respondent No. 3, the Director, Adult Education, to supply 31,500 lanterns at the rate of Rs. 195.00 per dozen in the various districts of the State of Bihar as per the details given by him in the aforesaid letter. A copy of the aforesaid letter is appended as Annexure-5 to this writ petition. The petitioners in pursuance of the direction, as contained in Annexure-5, supplied the lanterns to the various districts Head Quarters as directed and submitted his bill vide letter dt. 1-11-1983 and 7-11-1983 for Rs. 3,96,199.55 paise and Rs. 1,36,084.26 paise respectively totalling Rs. 5,32,283.81 paise. It has also been stated by the learned counsel for the petitioners that subsequently an agreement was signed between the representative of the petitioner No. 1 and respondent No. 3 as per the letter No. 2202 dt. 12-10-1983. A true copy of the agreement is appended as Annexure-7 to this writ petition. It has further been stated that after the supply was completed the petitioners approached respondent for making payment in time, explaining their difficulty in meeting their financial obligation, like payment of salary and liquidation of loans taken from the Bank and interest, etc. which they had to bear on that account. But the payments were not made. The petitioner company again wrote to respondent No. 3. vide letter dt. 3-1-1984 (Annexure-8) apprising him with the facts of the case and praying him for an early payment. Subsequently, on 1-2-1984. petitioner- company was paid an amount of Rupees 3,83,906.25 paise by cheque as part payment still a balance of Rs. 1,48,371.56 paise remained due as against the supply of lanterns. The petitioner company again wrote to the Director, Adult Education, respondent No. 3 praying that the balance payment should be made at an early date. It has also been stated that in spite of the further reminders and representations, filed by the petitioner at various levels, no further payments was made to the petitioner as such they had no option but to move this Hon'ble Court.

(3.) It has further been submitted that respondent having agreed and promised to pay the price of Rs. 195.00 per dozen for the supply of the lanterns are bound by the principles of estoppel and are duty bound to honour their demand and make payment at an early date. It has further been stated that the petitioner company which is a Small Scale Industry will have no option but to close down the industry itself as it is not in a position to sustain such a heavy loss and in any view of the matter not in a position to pay high bank interests and to meet other expenses, if the State authorities are permitted to act in such an arbitrary fashion. It has further been submitted that the belated payment is causing immense loss to the petitioner company as it has borrowed money from their banks and is paying interest at the rate of 16 per cent. per annum on the said borrowed money and the interest is amounting for no fault of the petitioner company.