CHAMERA HYDRO ELECTRIC PROJECT Vs. DIGVIJAY CEMENT CO. LTD. AND OTHERS
LAWS(HPH)-1991-7-19
HIGH COURT OF HIMACHAL PRADESH
Decided on July 09,1991

Chamera Hydro Electric Project Appellant
VERSUS
DIGVIJAY CEMENT CO. LTD. AND OTHERS Respondents

JUDGEMENT

Kamlesh Sharma, J. - (1.) The plaintiff, Chamera Hydro Electric Project, Banikhet, District Chamba, has filed Civil Suit No. 112 of 1990 for the recovery of Rs. 58,38,711.51p inclusive of interest upto 31.7.1991 against defendant No. 1, Shri Digvijay Cement Coy., Limited. On receipt of notice of the suit, instead of filing written statement, Shri Digvijay Cement Coy. Ltd. has filed C.M.P. No. 93 of 1990 pointing but that this Court does not have territorial jurisdiction to try this suit and appropriate orders be passed in this regard. The plaintiff, Chamera Hydro Electric Project filed reply to the application and has resisted it.
(2.) I have heard the learned Counsel for the parties and gone through the record. The facts as emerge from the plaint and documents alongwith it are that Regional Commissioner for Cement Industry, Ministry of Industries, Government of India, New Delhi, vide its authorisation dated 31.12.1985 issued Release Order of four thousand metric tonnes of cement for IVth quarter 1985 in favour of Chamera Hydro Electric Project. The cement was ordered to be supplied by Shri Digvijay Cement Co. Ltd., Digvijay-gram, Gujarat. The release order was valid for a period of 31/2 months from the date of its issuance.
(3.) In pursuance of the Release Order, Chamera Hydro Electric Project, vide its letter dated 15.1.1986 placed an order with Shri Digvijay Cement. Coy. Ltd. for supply of four thousand metric tonnes of cement. On receipt of invoice/proforma bill dated 20.1.1986 from Sh. Digvijay Cement Coy. Ltd., 100% advance payment of Rs. 35,12,329.60p towards price of four thousand metric tonnes of cement was made by way of Bank Draft No. 359854 dated 18.2.1986 which was sent by registered post from post office Banikhet, District Chamba, Himachal Pradesh, as per one of the conditions of the Supply Order. Another term and condition stated in the supply order was that cement was to be delivered F.O.R. Chakki Bank, Pathankot, Shri Digvijay Cement Coy. Ltd., failed to supply the cement despite repeated demands made by Chamera Hydro Electric Project and directions issued by the Regional Commissioner for Cement Industry, Ministry of Industries, Government of India, New Delhi. Ultimately, Chamera Hydro Electric Project cancelled the supply order and approached Shri Digvijay Cement Coy. Ltd. to refund the advanced amount of Rs. 35,12,329.60p with interest. Shri Digvijay Cement Coy. Ltd. agreed and paid an amount of Rs. 10,00,000/- in two equal instalments, on 3rd November, 1987 and February, 1988. The remaining amount was not paid despite promises made by Shri Digvijay Cement Coy. Ltd. Hence the present suit.;


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