LAWS(PAT)-1998-9-19

UNITED COLLIERIES LTD Vs. COAL INDIA LIMITED

Decided On September 09, 1998
United Collieries Ltd Appellant
V/S
COAL INDIA LIMITED Respondents

JUDGEMENT

(1.) THIS appeal has been preferred by the above named plaintiff -appellant against the judgment and decree dated 14.7.1986 and 26.7.1986 respectively passed by the then Sub -Judge, Hazaribagh, in Money Suit No. 11 of 1982 whereby the suit for recovery of Rs. 1,75,210.30 paise of the plaintiff -appellant has been dismissed.

(2.) THE plaintiff was the erstwhile owner of Central Sounda Colliery and was dealing in coal business and in course of such business plaintiff supplied coal to the Northern Railway prior to 31.1.1973 and for that six separate bills for a total value of Rs. 1,97,887.30 paise were drawn up in the month of January, 1973, out of which an adjustment was made for Rs. 20,677/ - and a balance of Rs. 1,77,210.30 paise remained outstanding. As per the plaintiffs case, Central Sounda Colliery was taken over of its management under the provisions of Coal Mines (Taking Over of Management) Ordinance, 1973 on 31.1.1973, which was later on converted into an Act. Thereafter, the said colliery was vested in the Central Government under the Central Coal Mines (Nationalisation) Act, 1973. Accordingly, the Management of Central Sounda Colliery was being taken over on 31.1.7 973 and accordingly, all the bills and all types of transactions were taken over by the custodian as per the Coal Mines (Taking over of Management) Act, 1973 and the said custodian appointed by the Central Government was entrusted to realise all the dues of the Coal Mines to the exclusion of all persons. The custodian being the statutory authority under the Act should have realised the dues of the plaintiff from the defendant No. 3 -Northern Railway and on that expectation the plaintiff did not take any step and was awaiting the audited accounts to be supplied to it. Then again in the meantime, Coal Mines (Nationalisation) Act came into force having its appointed date on 1.5.1973 and after that the Government Companies were formed known as Coal India Ltd. and its subsidiary Central Coal -Fields Ltd., who are the defendant Nos. 1 and 2 respectively. All the assets and liability of the erstwhile private company under Section 19(1) of the Coal Mines (Nationalisation) Act of 1973 were vested to the Central Govt. Under Section 19 of the Act, the Govt. Company was to receive or realise the dues to the Coal Mines after 31.1.1973 and the copy of the statement of account duly audited was to be delivered to the owner. In the present case, according to the plaintiff, such audited accounts were supplied by the defendant Nos. 1 and 2 only on 17.8.1979 and as per that statement of accounts the realisation of dues of the Coal Mines of the plaintiff was shown to be Rs. 6,98,921.90 paise with respect to the period prior to taking over i.e., 31.1.1973 but such accounts did not disclose as to whether the amount due to the defendant No. 3 was realised or not. The plaintiff made correspondences with the defendant No. and also with the defendant Nos. 1 and 2, but no break up was supplied by the defendant Nos. 1 and 2 or the defendant No. 3 as to whether the said amount of six bills towards the dues to the defendant No. 3 have been realised by the defendant Nos. 1 and 2 or not. As such, the plaintiff served a notice under Section 80 of the Civil Procedure Code to the defendant No. 3 and a reply was given on 6.7.1982 that a sum of Rs. 1,34,379.90 paise covering amount of last four bills were paid to the custodian and regarding the two other bills investigation was still going on. When the plaintiff could find that the defendants were intentionally avoiding the plaintiffs payment, the suit was filed for the amount as already mentioned above.

(3.) DEFENDANT Nos. 1 and 2 have also filed joint written statement contending, inter alia, that amount which have been realised by the Custodian amounting to Rs. 6,98,921.09 paise have already been paid to the plaintiff and that any dues even if remained with the defendant No. 3, the defendant Nos. 1 and 2 can not be held liable for it because as per the statement of accounts whatever amount have been received and realised from northern and eastern railway have been amalgamated and shown in the audited accounts, break up of which was not available to them. It was also contended that the plaintiff is not entitled to any claim at this stage when the same has become totally barred by limitation.