GOVT OF INDIA Vs. JAMUNADHAR RUNGTA

JUDGEMENT

(1.) THESE two appeals have been heard together.

(2.) THEY are against the same judgment of the Additional Subordinate Judge of Darbhanga. The plaintiffs are the appellants in First Appeal No. 307 of 1951 and defendants 8 and 9, being the defendants 3rd and 4th parties respectively, are the appellants in First Appeal No. 254 of 1951. THEY are the Governments of India and Bihar in their Departments of Food.

(3.) DURING the year 1944 on account of war conditions there was great scarcity of foodgrams and the Government of India had, therefore, arranged for the procurement of paddy and rice in order to distribute it among the people of different Provinces in India and for that purpose, it was alleged by the plaintiffs, that defendant No. 1 had been appointed Agent by the. Government of India on the 11th January, 1944, his functions being to act as Purchasing Agent on behalf of the Government of India in respect of paddy to be procured within territory, of his Highness the Maharaja of Nepal, and, in addition, to be fully responsible for the milling in Bihar of such paddy for the delivery of an equivalent quantity of rice to such recipient administrations, or their representatives, as may be nominated by the Department of Food of the Government of India. He has, amongst Other things, to make arrangement for parboiling and milling at specified mills of the paddy in respect of which a processing charge was to be paid at a rate per maund approved by the Government of Bihar from time to time. He had also to arrange for the despatch of rice ex-mill to the recipient administrations after having taken the necessary permits in respect of exports to Bengal and other Provinces and obtaining from the latter a clear discharge in respect of weights and quality, it being understood that transportation, and other delivery charges up to the point of loading and despatch were to be borne by the recipient Governments. In consideration of doing these duties and others, he was to receive 2 annas per maund of paddy purchased by him, the foregoing charge to include weighing, filling into bags and their stitching incurred on paddy at the point of purchase. Defendant No. 1 was also to follow a particular procedure which was to govern the operations of these procedures as laid down by the Government of India in their letter dealing with the maintenance of accounts incurred by the defendant, submitting the bills and the taking of receipts from the recipient administrations. Defendant No. 1 was also paid an advance of Rs. 25,00,000/- by the Government of India, the amount having been placed at his disposal with the Imperial Bank of India at Patna. This advance was recoverable from defendant No. 1 finally under the orders of the Food Department of the Government of India, either, in cash, or by adjustment against defendant's bills presented towards the end of the operation. Defendant No. 1 accepted these proposals of the Government of India in writing on the 13th January, 1944.