BHARAT COKING COAL LTD Vs. SHASHI BALA

JUDGEMENT

(1.) THIS appeal, at the instance of the appellant, is directed against the judgment dated 8.8.1989 and decree dated 21.8.1989 passed in Money Suit No. 22/84, whereby and whereunder the suit of the plaintiff has been decreed on contest with cost.

(2.) THE case of the plaintiff -respondent in brief is that the respondent is the sole proprietor of Mazda Cable Company, a company manufacturing and supplying various types of cables such as telephone cable of armoured, unarmoured, railway and control cables etc. The production of, the plaintiff is also approved by the Director General of Mines Safety and many other Government and Semi Government organizations including Government Company. In pursuance of tender invited by the defendant by Tender Notice No. PUR/702179/Telephone -RC/81 -82, plaintiff submitted quotations for the said under ground armoured telephone cables vide letter dated 11.6.1981 from her regional office at Hyderabad and defendant -appellant accepted the offer of the respondent, vide his letter No, PUR/702179/Telephone/81 -1586 -dated 8/13.8.1981 and order was placed on the plaintiff under the defendant 'sreference No. PUR/702179/Telephone/81/397 date 2/9. 4.1982 for Rs. 18,34,360/ - plus excise duty and sales tax etc. The respondent dispatched the goods after the goods were duly inspected by Shri P.P. Singh, Executive Engineer and authorised competent senior officer of the defendant. The goods were also inspected by the defendant. It is further submitted that the respondent in consideration of the price of cable supplied to the appellant on 20.7.1982 and 9.9.1982 drew hoondies upon defendant at Delhi and negotiated the same through State Bank of India, Dhanbad. The appellant accepted the hoondies which were on valid consideration and agreed to pay and honour the same on 12.1.1983 being the amount mentioned in the hoondies in the Bank. There were two hoondies, one for Rs. 19,37,679.31 paise dated 12.9.1982 and another is for Rs. 1,94, 635.38 paise dated 29th July, 1982/25.12.1982. The defendants retired the documents after accepting the hoondies on 26.11.1982 towards the payment of the goods supplied as aforesaid. In terms of the contract, the hoondies were valid for 45 days from the signed draft i.e. the payment was to be made 45 days after it was presented. It is further submitted that the defendant has failed to honour the hoondies on maturity and make payment thereof when presented by the Bank. Respondent went on reminding appellant for early payment and the State Bank of India was also requested to get payment from the defendant but respondent received a memo dated 7.2.1983 from the State Bank of India, Dhanbad about information that payment was not coming. Thereafter on 17.2.1983 the respondent again requested the State Bank of India, Dhanbad to represent the above hoondies to the defendant. The State Bank of India, Dhanbad again wrote to the defendant for making payment to the respondent on the hoondies vide letter dated 7.3.1983. The respondent 'srepresentative went in person to the State Bank of India and made enquiries but he was informed that payment is not forthcoming from the defendant. Accordingly the respondent served a legal notice dated 30.3.1983 to the defendant through B.B. Sharma, Advocate, Delhi for dishonouring the said hoondies and demanded payment for the goods supplied against hoondies. The appellant received the notice dated 30.3.1983 on 5.4.1983 but compliance was not made. The Manager, State Bank of India returned the hoondies back to the plaintiff vide letter dated 21.6.1983, Thereafter the respondent addressed a letter to the Chairman of the defendant but to no avail. The respondent thereafter claimed interest @ 18% per annum from 12.1.1983 and the interest is due on the entire amount.

(3.) ON the pleadings of the parties, following issues were framed by the learned Court below for determination in the suit.