MANGALJI CHHOTEY LAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE only point for decision in this second appeal by the plaintiffs is whether the plaintiffs are entitled to the refund of the earnest money deposited by them with the defendant State of Rajasthan at the time of submitting their tender for supply of maize and iowar?

(2.) THE trial court decreed the suit for refund of Rs. 2500/- being the earnest money and also for Rs. 450/- as interest thereon, total Rs. 2950/ -. On appeal by the defendant, the suit was dismissed. Consequently the plaintiffs have come in second appeal to this Court.

(3.) THE facts relevant for the purposes of this appeal are as follows: the State of Rajasthan by a notification (Ex. A. 4) published in the rajasthan Rajpatra dated 6-12-1953 invited tenders for purchase of baira. maize Jowar etc. The tenderer was required to make a deposit at the rate of -/4/- for each maund of grain to be supplied, as earnest money with the Commissioner. Civil Supplies. Rajasthan. It was further provided by Clause (8) of the said notification that the tenderer whose tender is accepted would be required to complete the supply of the grain as contracted by him within one month of the communication of the acceptance of the tender failing which the earnest money would be forfeited by the Government. The plaintiffs submitted tender for supply of maize and Jowar at Kota. Jhalawar. and Baran and deposited Rs. 2500/- as earnest money. His tender was accepted vide letter of the commissioner of Civil Supplies, dated 27-12-1953 Ex. A. 1, by which the commissioner. Civil Supplies also called upon them to contact the collectors "kota and Jhalawar for execution of the agreement and arrange delivery of the grain within the specified period. It appears that the plaintiffs were not able to supply the contracted grain within one month as stipulated. Consequently they sought extension of period for fulfilment of the contract, and by his letter dated 6-2-1954 the commissioner. Civil Supplies extended time for delivery by another fortnight as a special case. The original letter dated 6-2-1954 has been placed on the record and marked Ex. 5 and Ex. A. 3. The plaintiffs' case is that they offered delivery of the contracted food-grains but the same was refused by the Collectors concerned. It is further averred that the collector, Jhalawar by his letter dated 17-2-1954 informed the plaintiffs that the Government would not purchase the food-grains from them as they had not executed the agreement upto 15th February, 1954. The plaintiffs served a notice dated 24-7-1956 on the defendant State of rajasthan requiring the latter to refund the earnest money Rs. 2500/-failing which they would file suit against the State for recovery of the said amount along with interest. In reply to the said notice the Collector. Jhalawar asked the plaintiffs vide his letter dated 6-10-1956 to give the necessary details about the deposit of Rupees 2500/- and also to supply a copy of the receipt so that the necessary steps may be taken for refund of the earnest money. The letter dated 6-10-1956 is marked Ex. 2. By a subsequent letter dated 22-1-57. (Ex. 3 ). the Collector. Jhalawar asked the plaintiffs to approach the Administrative Officer. Civil Supplies rajasthan for necessary action. The earnest money was however, not refunded. Consequently the plaintiffs filed the present suit in the Court of Civil Judge. Kota on 18-2-1957 for refund of earnest money Rs. 2500/- along with interest, i. e. Rs. 450/ -. total Rs. 2950/ -.