TRIDENT TUBES LTD Vs. GOVERNMENT OF BIHAR

JUDGEMENT

(1.) This writ petition has been filed by M/s. Trident Tubes Limited, a Company incorporated under the Companies Act, 1956 (hereinafter called the said Company) through its Director Sri Sudarshan Kumar Saboo for a commend upon the respondents concerned directing them to pay to the petitioner the outstanding sum of Rs. 15,06,597.33 P. together with interest thereon. According to the petitioner, the said amount is payable by the respondents, the Government of Bihar, on account of price for the materials supplied by the petitioner Company to the respondents pursuant to the orders issued by the Government of Bihar.

(2.) The case of the petitioner is that the said Company is engaged in manufacturing and producing plastic tubes and strainers of various ranges and specifications. The Engineer-in-Chief-cum-Special Secretary, Government of Bihar, Patna (respondent No. 2) invited tenders as usual for supply of materials such as UPVC Ribbed Strainer. The petitioner participated in those tenders, and ultimately the petitioner got orders for supply of certain materials to the State of Bihar vide several orders under the signature of respondent No. 2. This Court is not entering into factual details of this case for the reason stated hereinafter in this judgment.

(3.) The admitted case of the petitioner is that while giving delivery of the materials the petitioner relied on the representation of the respondents that the price of the materials supplied will be paid within 30 days and the petitioner changed and altered its position in various ways, namely, by increasing number of their existing employees and officers and further generated funds by obtaining loan on interest from their Bankers and thereby undertook a heavy financial burden. Further case of the petitioner is that instead of making the full payment, the respondents government gave part payment to the petitioner leaving the balance amount which is still due and according to the petitioner, this action on the part of the respondents amounts to going back upon their unequivocal promise to make payment of price within a month from the date of receipt of the materials.