{"id":211253,"date":"2009-04-17T00:00:00","date_gmt":"2009-04-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/punjab-khadi-and-village-vs-jagdev-singh-and-others-on-17-april-2009"},"modified":"2018-07-21T14:12:58","modified_gmt":"2018-07-21T08:42:58","slug":"punjab-khadi-and-village-vs-jagdev-singh-and-others-on-17-april-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/punjab-khadi-and-village-vs-jagdev-singh-and-others-on-17-april-2009","title":{"rendered":"Punjab Khadi And Village … vs Jagdev Singh And Others on 17 April, 2009"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Punjab Khadi And Village … vs Jagdev Singh And Others on 17 April, 2009<\/div>\n
R.S.A. No. 965 of 2008 (O&M)\n                                                                    -1-\n\n    IN THE HIGH COURT OF PUNJAB AND HARYANA AT\n                   CHANDIGARH\n\n\n                             R.S.A. No. 965 of 2008 (O&M)\n                             Date of decision: 17.04.2009\n\n\nPunjab Khadi and Village Industries Board, Chandigarh, and another\n                                                         ....Appellants\n\n\n                   Versus\n\n\n\nJagdev Singh and others\n                                                        ....Respondents\n\n\nCORAM: HON'BLE MR. JUSTICE VINOD K. SHARMA\n\nPresent: Mr. Shailender Sharma, Advocate,\n         for the appellants.\n\n         Mr. T.K. Joshi, Advocate,\n         for respondent No. 1.\n\n         Ms. Jyoti Choudhary, Advocate,\n         for respondent No. 3.\n\n                   *****\n<\/pre>\n
VINOD K. SHARMA, J (ORAL)<\/p>\n
         This order shall dispose of R.S.A. No. 965 of 2008 titled<\/p>\n
Punjab Khadi and Village Industries Board, Chandigarh, and another Vs.<\/p>\n
Jagdev Singh and others, R.S.A. No. 966 of 2008 titled Punjab Khadi<\/p>\n
and Village Industries Board, Chandigarh, and another Vs. Sardool<\/p>\n
Singh and others, R.S.A. No. 967 of 2008 titled Punjab Khadi and<\/p>\n
Village Industries Board, Chandigarh, and another Vs. Avtar Singh and<\/p>\n
others, R.S.A. No. 968 of 2008 titled Punjab Khadi and Village<\/p>\n
Industries Board, Chandigarh, and another Vs. Barjinder Singh and
\n R.S.A. No. 965 of 2008 (O&M)
\n                                                                      -2-<\/span><\/p>\n
others, R.S.A. No. 969 of 2008 titled Punjab Khadi and Village<\/p>\n
Industries Board, Chandigarh, and another Vs. Harpal Singh and others,<\/p>\n
R.S.A. No. 1257 of 2008 titled The Khadi and Village Industries<\/p>\n
Commission, VILE PAREL (West), Mumbai, and another Vs. Avtar<\/p>\n
Singh and others, R.S.A. No. 1258 of 2008 titled The Khadi and Village<\/p>\n
Industries Commission, VILE PAREL (West), Mumbai, and another Vs.<\/p>\n
Sardool Singh and others, R.S.A. No. 1259 of 2008 titled The Khadi and<\/p>\n
Village Industries Commission, VILE PAREL (West), Mumbai, and<\/p>\n
another Vs. Barjinder Singh and others, R.S.A. No. 1260 of 2008 titled<\/p>\n
The Khadi and Village Industries Commission, VILE PAREL (West),<\/p>\n
Mumbai, and another Vs. Harpal Singh and others, R.S.A. No. 1261 of<\/p>\n
2008 titled The Khadi and Village Industries Commission, VILE PAREL<\/p>\n
(West), Mumbai, and another Vs. Jagdev Singh and others, as common<\/p>\n
questions of law and fact are involved.\n<\/p>\n
          For brevity sake facts are being taken from R.S.A. No. 965 of<\/p>\n
2008 titled Punjab Khadi and Village Industries Board, Chandigarh, and<\/p>\n
another Vs. Jagdev Singh and others.\n<\/p>\n
          This regular second appeal is directed against the judgment<\/p>\n
and decree dated 6.12.2007 passed by the learned Courts below vide<\/p>\n
which the suit filed by the plaintiff\/respondent for permanent injunction<\/p>\n
restraining the defendants from recalling the margin money deposited<\/p>\n
with the bank under the Margin Money Scheme for purchase of<\/p>\n
harvester combine, stands decreed.\n<\/p>\n
          The plaintiff\/respondent No. 1 brought a suit on the plea that<\/p>\n
the defendants started Margin Money Scheme for giving loan for the<\/p>\n
purpose of purchase of harvester combine.       The plaintiff\/respondent
\n R.S.A. No. 965 of 2008 (O&M)
\n                                                                         -3-<\/span><\/p>\n
under the said Scheme applied for sanction of loan for purchase of<\/p>\n
harvester combine, as per the scheme, and the defendants after satisfying<\/p>\n
about the eligibility of the plaintiff, recommended his case to the bank<\/p>\n
for grant of loan.\n<\/p>\n
          The State Bank of Patiala, Branch Banbhaura, accepted the<\/p>\n
proposal and agreed to disburse a loan of Rs.9,90,000\/- for purchase of<\/p>\n
harvester combine. As per the Scheme, the defendant\/appellant sent a<\/p>\n
cheque for a sum of Rs.2,47,500\/- to the State Bank of Patiala, Branch<\/p>\n
Banbhaura, as margin money, thereafter the plaintiff deposited the loan<\/p>\n
instalments regularly.\n<\/p>\n
          The case set up by the plaintiff is that after the loan amount<\/p>\n
was paid, a letter was sent to the Bank by the defendants, for recalling<\/p>\n
the margin money, on the plea, that purchase of harvester combine, was<\/p>\n
not covered under the Scheme, approved by the Khadi and Village<\/p>\n
Industries Commission. The plaintiff alleged that the letter was illegal,<\/p>\n
null and void, and sought injunction against its implemention.<\/p>\n
          On notice, the defendants contested the suit, wherein besides<\/p>\n
taking preliminary objections, it was contended, that the margin money,<\/p>\n
has been recalled, as per advice of the Agriculture Department, as the<\/p>\n
harvesting combine is an agricultural machine, which did not fall within<\/p>\n
the zone of consideration for the purpose of loan of Punjab Khadi and<\/p>\n
Village Industries Board.\n<\/p>\n
          It is also the case set up by the defendants that one of the terms<\/p>\n
of the loan was that in case, the subsidy was not approved by the<\/p>\n
Commission, then the same was liable to be recalled.<\/p>\n
          On the pleadings of the parties, the learned trial Court was
\n R.S.A. No. 965 of 2008 (O&M)
\n                                                                        -4-<\/span><\/p>\n
pleased to frame the following issues: –\n<\/p>\n
           “1. Whether the plaintiff is entitled for the relief of
\n                permanent injunction as prayed for? OPP.\n<\/p><\/blockquote>\n
           2.   Whether the suit is not maintainable in the present
\n                form? OPD\n<\/p><\/blockquote>\n
           3.   Whether suit is bad for non-joinder of the
\n                necessary parties? OPD\n<\/p><\/blockquote>\n
           4.   Whether the plaintiff has not casue of action to file
\n                the present suit? OPD.\n<\/p><\/blockquote>\n
           5.   Whether this Court has no jurisdiction to file the
\n                present suit? OPD.\n<\/p><\/blockquote>\n
           6.   Relief.”<\/p><\/blockquote>\n
           On appreciation of evidence, the learned Courts below decided<\/p>\n
issue No. 1, in favour of the respondent\/plaintiff, by invoking principle<\/p>\n
of promissory estoppel, as it was not disputed that the Scheme floated by<\/p>\n
the defendants was margin money scheme for purchase of harvester<\/p>\n
combine.\n<\/p>\n
           Once it was not disputed that the Scheme floated was for<\/p>\n
purchase of harvester combine, and it was also proved on record that in<\/p>\n
pursuance of the Scheme, the respondent\/plaintiff applied for loan,<\/p>\n
which was considered and forwarded by defendant No. 1 to the Bank.<\/p>\n
The Bank accepted the proposal of defendant in pursuance thereto the<\/p>\n
plaintiff spent money, and also repaid the loan, the learned Courts below<\/p>\n
righly invoked the principle of promissory estoppel to restrain the<\/p>\n
defendant\/appellant from recalling the margin money deposited with the<\/p>\n
bank by way of impugned decree.\n<\/p>\n
           The learned counsel appearing on behalf of the appellant<\/p>\n
contends that the appeal raises the following substantial questions of
\n R.S.A. No. 965 of 2008 (O&M)
\n                                                                            -5-<\/span><\/p>\n
law: –\n<\/p>\n
            “1. Whether the suit for injunction in the facts and
\n                   circumstances was competent?\n<\/p><\/blockquote>\n
            2.     Whether in view of the stipulation in the terms of the
\n                   loan, could injunction be granted in favour of the
\n                   plaintiff\/respondent?<\/p><\/blockquote>\n
            In support of first substantial question of law, the learned<\/p>\n
counsel     for      the   appellant    vehemently    contends     that     the<\/p>\n
plaintiff\/respondent should have filed suit for declaration to challenge<\/p>\n
the order of recall, and mere suit for injunction for restraining the Bank<\/p>\n
from implementing the order was not competent, as in absence of<\/p>\n
declaration that order was null and void, no injunction could be granted.<\/p>\n
            The plea of the learned counsel for the appellant cannot be<\/p>\n
accepted.        It is not in dispute that in pursuance to the Scheme,<\/p>\n
defendant\/appellant had, in fact, deposited margin money, in the account<\/p>\n
of the plaintiff\/respondent, therefore, the suit for injunction was<\/p>\n
competent, as the letter of recall was prima facie null and void, being in<\/p>\n
violation of settled principle of promissory estoppel.<\/p>\n
            The substantial question of law is answered against the<\/p>\n
defendant\/appellant.\n<\/p>\n
            The learned counsel for the appellant thereafter contends that<\/p>\n
undertaking was given by the plaintiff\/respondent that in event of non-<\/p>\n
acceptance of the Scheme by the defendant No. 2, he would refund the<\/p>\n
amount.     The learned Courts below, therefore, were not justified in<\/p>\n
decreeing the suit The plaintiff had no legal right to the amount in view<\/p>\n
of the undertaking given while advancing loan, as admittedly the<\/p>\n
Scheme was not accepted by the Commission.\n<\/p>\n
 R.S.A. No. 965 of 2008 (O&M)
\n                                                                       -6-<\/span><\/p>\n
          This contention of the learned counsel for the appellant also<\/p>\n
cannot be accepted. Once under the Scheme, parties have acted in good<\/p>\n
faith and had changed position to their detriment, the defendants were<\/p>\n
estopped from recalling the margin money.\n<\/p>\n
          Under the contract, the defendants could have sought the<\/p>\n
refund   of   money     by    taking   legal      recourse   against   the<\/p>\n
plaintiff\/respondent, but they had no such authority to unilaterally back<\/p>\n
out, from the Scheme floated on the ground that the Scheme was not<\/p>\n
acceptable to the Commission, without any valid reason.<\/p>\n
          The learned Courts below in the facts and circumstances,<\/p>\n
therefore, rightly applied the principle of promissory estoppel to grant<\/p>\n
decree of permanent injunction.\n<\/p>\n
          The condition in loan agreement could not come in the way of<\/p>\n
the plaintiff, once they had changed their position to their detriment on<\/p>\n
the assurance given by the defendant\/appellant.<\/p>\n
          Consequently, the second substantial question of law is also<\/p>\n
answered against the appellant.\n<\/p>\n
          No merit.\n<\/p>\n
          Dismissed in limine.\n<\/p>\n
                                                   (Vinod K. Sharma)
\n                                                        Judge
\nApril 17, 2009
\nR.S.<\/p>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Punjab Khadi And Village … vs Jagdev Singh And Others on 17 April, 2009 R.S.A. No. 965 of 2008 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH R.S.A. No. 965 of 2008 (O&M) Date of decision: 17.04.2009 Punjab Khadi and Village Industries Board, Chandigarh, and another ….Appellants Versus […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,28],"tags":[],"class_list":["post-211253","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nPunjab Khadi And Village ... vs Jagdev Singh And Others on 17 April, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/punjab-khadi-and-village-vs-jagdev-singh-and-others-on-17-april-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Punjab Khadi And Village ... vs Jagdev Singh And Others on 17 April, 2009 - 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