KEDIA APPLIANCES LIMITED Vs. NIHARIKA DISTRIBUTORS

JUDGEMENT

(1.) By means of this complaint, the complainant has prayed for damages amounting to Rs.2,07,074.50 against the opposite parties. The facts of the case, stated in brief, are that opposite party No.1, Niharika Distributors, is a distributor of complainant for Bihar State. For distributorship, opposite party No.1 got a Bank Guarantee from opposite party No.2, State Bank of India for an amount of Rs.2,50,000/- for a period of six months. This Guarantee was dated 15.3.1986. The Bank, opposite party No.2, was liable to make upto an amount of Rs.2,50,000/- payment to the complainant. The complainant wrote a registered letter dated 2nd September, 1986 to opposite party No.2, the Bank, for renewal of Bank Guarantee as a sum of Rs.1,01,527.50 was due against opposite party No.1. This letter was received by opposite party No.2 on 4.9.1986. Thereafter the complainant on 7.11.1986 sent a reminder to his letter dated 2nd September, 1986. By letter dated 18th November, 1986 opposite party No.2 acknowledged the receipt of letter but did not mention the date on which the letter was received by them. Thereafter several letters were written to the opposite party Nos.1 and 2 but no reply was received. Opposite party No.2 did not renew the Bank Guarantee and colluded with opposite party No.1 and did not pay the amount of Rs.1,01,527.50. Opposite party No.2 is liable to pay this amount.

(2.) A notice dated 13.8.1991 was sent through an Advocate for an amount of Rs.1,42,581.30 including the amount mentioned above alongwith interest. Opposite party No.1 refused to accept the registered cover, but opposite party No.2 got a reply sent and denied his liability to make the payment.

(3.) On these allegations, the complainant has prayed for recovery of Rs.1,01,527.30 alongwith interest of Rs.49,492.95 from 31.12.1991. He has also claimed a sum of Rs.10,000/- as expenses of Advocate, witnesses, typing charges, etc. A sum of Rs.5,000/- was also claimed as compensation.