JUGNU CONSTRUCTION Vs. CENTRAL COALFIELDS LIMITED

JUDGEMENT

(1.) These two appeals are directed against the common judgment and decree dated 15.09.2005 and 26.09.2005 respectively passed in Money Suit no.2/2000 passed by Sub-JudgeIst, Bermo at Tenughat decreeing the plaintiff's suit and directing the defendants(appellants herein) to pay Rs.3,96,73,455.00 with interest at the rate of 12% per annum till realisation while dismissing the counter claim of the defendants/appellants.

(2.) The appellants in F.A.No.134 of 2005 and F.A.NO.135 of 2005 were the defendants in Money Suit no.2/2000 and the respondent, in both the appeals, was the plaintiff in the said Money Suit no.2/2000. For the sake of convenience they will be referred to as plaintiff and defendants.

(3.) The case of the plaintiff is that it is a government company under Section 617 of the Companies Act, 1956 having its registered office at Darbhanga House, Ranchi and having business at Swang Washery, P.O.Swang, District-Bokaro. It is a subsidiary company of Coal India Ltd. The defendant no.1, Jugnu Construction, is a partnership firm comprising of defendants no.2 and 3 as the partners of the said firm. The defendants' firm is engaged in the manufacturing of briquettes from slurry. The plaintiff invited a tender for lifting of slurry for the purpose of manufacturing of briquettes. Defendants submitted their tender which was accepted in the year 1982. They were allowed to dispatch the slurry after converting into briquettes within the premises of the plaintiff on the terms that the conversion factor shall be 1 tonne of briquettes for 1.5 tonnes of slurry and the defendants had agreed to pay other charges including royalty, cess, sales taxes, excise duty, etc. on the slurry.