{"id":221551,"date":"2008-09-10T00:00:00","date_gmt":"2008-09-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/food-corporation-of-india-vs-ms-balaji-goods-carriers-on-10-september-2008"},"modified":"2015-01-24T16:09:39","modified_gmt":"2015-01-24T10:39:39","slug":"food-corporation-of-india-vs-ms-balaji-goods-carriers-on-10-september-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/food-corporation-of-india-vs-ms-balaji-goods-carriers-on-10-september-2008","title":{"rendered":"Food Corporation Of India vs M\/S Balaji Goods Carriers on 10 September, 2008"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Food Corporation Of India vs M\/S Balaji Goods Carriers on 10 September, 2008<\/div>\n
RSA No.1679 of 2004(O&M)                                   1\n\nIN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH\n\n\n                                       RSA No.1679 of 2004(O&M)\n                                       Date of decision: 10.9.2008\n\nFood Corporation of India                           ......Appellant\n\n                                Versus\n\nM\/s Balaji Goods Carriers                           ......Respondent<\/pre>\n
CORAM:-      HON'BLE MR. JUSTICE RAKESH KUMAR GARG\n\n                          * * *\n\nPresent:     Mr. H.S. Dhandi, Advocate for the appellant.\n\n<\/pre>\n
             Mr. Ashok Sharma Nabhewala, Advocate for the respondent.<\/p>\n
Rakesh Kumar Garg, J .\n<\/p>\n<\/p>\n
1.           The defendant-appellant invited offers for transportation of<\/p>\n
stocks of foodgrains from Vallah District Amritsar to Srinagar.             The<\/p>\n
plaintiff-respondent who is carrying on the business as transport Contractor<\/p>\n
submitted his offer at the rate of Rs.24.84 paise per quintal. The said offer<\/p>\n
of the respondent was accepted by the appellant-Corporation and the<\/p>\n
plaintiff-respondent was required to deposit a security amount and<\/p>\n
complete the other formalities before 21.2.1986. In consequence of the<\/p>\n
acceptance of the offer of the defendant-appellant, the plaintiff-respondent<\/p>\n
had deposited Rs.50,000\/- as security with the appellant-Corporation on<\/p>\n
18.1.1986.\n<\/p>\n
2.           It is the case of the plaintiff-respondent that in spite of the fact<\/p>\n
that it was ready and willing to transport the stocks of foodgrains, for the<\/p>\n
reasons best known to the appellant-Corporation no work of transport on<\/p>\n
stocks was assigned to it and instead the work was assigned to one M\/s<\/p>\n
Kay Carriers at the risk and cost of the appellant in the month of May,
\n RSA No.1679 of 2004(O&M)                                      2<\/span><\/p>\n
1996 without any notice to the plaintiff-respondent and without terminating<\/p>\n
the contract.\n<\/p>\n
3.           The    plaintiff-respondent   filed   a   suit       for   recovery   of<\/p>\n
Rs.4,81,500\/- i.e Rs.50,000\/- as refund of the security, Rs.4,00,000\/- as<\/p>\n
damages of breach of the contract and Rs.31,500\/- as interest up to the<\/p>\n
date of filing of the suit against the appellant-Corporation.<\/p>\n
4.           The suit was contested by the appellant-Corporation, admitting<\/p>\n
the fact that the offer of the plaintiff-firm was less and it was asked to<\/p>\n
complete the formalities and deposit the security amount before 21.2.1986.<\/p>\n
Deposit of Rs.50,000\/- on 18.1.1986 by the respondent was also admitted.<\/p>\n
It was also admitted that the respondent was awarded contract for one<\/p>\n
year, which was extendable for further three months.                    However, the<\/p>\n
respondent did not complete other formalities of the contract by due date<\/p>\n
i.e. 21.2.1986 and as such, after waiting for the respondent to fulfill the said<\/p>\n
requirement till 17.3.1986 the appellant-Corporation allotted the work to<\/p>\n
M\/s Kay Carriers, Amritsar, at the risk and cost of the plaintiff-respondent<\/p>\n
as per terms and conditions of the tender agreement. It was thus, the<\/p>\n
stand of the Corporation that the plaintiff was not entitled to the refund of<\/p>\n
the security amount, interest thereon or the damages.<\/p>\n
5.           After appreciating the evidence on file, the trial Court decreed<\/p>\n
the suit of the plaintiff-respondent for the recovery of an amount of<\/p>\n
Rs.50,000\/- only with proportionate costs which was the security amount to<\/p>\n
be deposited by the plaintiff with the appellant-Corporation. Rest of the<\/p>\n
claim of the respondent was dismissed.\n<\/p>\n
6.           Feeling aggrieved, the Food Corporation of India                filed an<\/p>\n
appeal which was dismissed by the District Judge, Amritsar vide impugned<\/p>\n
judgment and decree dated 10.1.2004.\n<\/p>\n
7.           Still not satisfied, the Food Corporation of India has filed the
\n RSA No.1679 of 2004(O&M)                                 3<\/span><\/p>\n
present appeal challenging the judgments and decrees of the Courts<\/p>\n
below.\n<\/p>\n
8.          Mr. H.S. Dhandi, learned counsel for the appellant-Corporation<\/p>\n
has vehemently argued that as per the terms and conditions of the<\/p>\n
contract, it was not necessary for the appellant-Corporation to repudiate<\/p>\n
the contract or to forfeit earnest money. Since after the grant of tender, the<\/p>\n
Contractor had failed to comply with the terms and conditions, the earnest<\/p>\n
money was liable to be forfeited.\n<\/p>\n
9.          On the other hand, learned counsel for the respondent, has<\/p>\n
supported the findings of the Courts below by arguing that there is no order<\/p>\n
of the appellant- Corporation repudiating the contract nor any other order<\/p>\n
was passed forfeiting the security amount. It is the argument of the learned<\/p>\n
counsel for the respondent      that without terminating contract with the<\/p>\n
plaintiff-firm, the appellant-defendant could not forfeit the amount of<\/p>\n
security.\n<\/p>\n
10.         I have heard learned counsel for the parties and perused the<\/p>\n
record.\n<\/p>\n
11.         I find no force in the contentions raised by the learned counsel<\/p>\n
for the appellant. From the documents and evidence on record this fact is<\/p>\n
also clear that contract between the plaintiff firm and defendant corporation<\/p>\n
is never terminated till today. There is no order on the file vide which the<\/p>\n
contract was terminated or any order was passed regarding the security<\/p>\n
amount of Rs.50,000\/-. As per clause X(b) Senior Regional Manager had<\/p>\n
right to terminate the contract in the event of breach by the contractor of<\/p>\n
any of the terms and conditions of the contract and to get the work done for<\/p>\n
the unexpired period of the contract at the risk and cost of the contractor<\/p>\n
and\/or forfeit the security or any part thereof for the sum or sums due for<\/p>\n
any damages, losses, charges, expenses or costs that may be suffered or
\n RSA No.1679 of 2004(O&M)                                4<\/span><\/p>\n
incurred by the corporation due to the contractor’s negligence. Clause XI(f)<\/p>\n
deals regarding the termination and forfeit of security deposited or any part<\/p>\n
thereof towards the satisfaction of any sum due to be claimed for any<\/p>\n
damages\/losses, charges, expenses etc. But there is no evidence on the<\/p>\n
file to show that any proceedings        are followed     by the defendant<\/p>\n
corporation for the recovery of any loss suffered by Food Corporation of<\/p>\n
India nor the Food Corporation of India has preferred any counter claim in<\/p>\n
the present case. In my opinion the defendant corporation cannot retain<\/p>\n
the security amount of Rs.50,000\/- without passing formal order of<\/p>\n
termination of contract with the plaintiff firm or passing any specific order<\/p>\n
regarding the security amount as per terms and conditions of the contract.`<\/p>\n
12.         For the reasons recorded above, I find no merit in the appeal.<\/p>\n
No substantial question of law arises in the present appeal.<\/p>\n
13.         Dismissed.\n<\/p>\n<\/p>\n
September 10, 2008                          (RAKESH KUMAR GARG)\nps                                                  JUDGE\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Food Corporation Of India vs M\/S Balaji Goods Carriers on 10 September, 2008 RSA No.1679 of 2004(O&M) 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH RSA No.1679 of 2004(O&M) Date of decision: 10.9.2008 Food Corporation of India ……Appellant Versus M\/s Balaji Goods Carriers ……Respondent CORAM:- HON’BLE MR. JUSTICE RAKESH […]<\/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-221551","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nFood Corporation Of India vs M\/S Balaji Goods Carriers on 10 September, 2008 - 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\/food-corporation-of-india-vs-ms-balaji-goods-carriers-on-10-september-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Food Corporation Of India vs M\/S Balaji Goods Carriers on 10 September, 2008 - 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