HIS DAVECOS GARMENTS FACTORY Vs. STATE OF RAJASTHAN
LAWS(SC)-1970-8-41
SUPREME COURT OF INDIA (FROM: RAJASTHAN)
Decided on August 31,1970

HIS.DAVECOS GARMENTS FACTORY Appellant
VERSUS
STATE OF RAJASTHAN Respondents

JUDGEMENT

Grover, J. - (1.) This is an appeal from a judgment of the Rajasthan High Court in which the sole question for determination is whether the agreements which were executed between the appellant and the respondent fulfil the requirements of Article 299 of the Constitution.
(2.) In a suit filed by the respondent against the appellant for recovery of Rs. 86,000 as damages for breach of contract on the basis of agreements which were executed by the Inspector-General of Police Rajasthan a preliminary issue was framed to the following effect: "Whether the agreements are not in accordance with Art. 299 of the Constitution of India and hence the suit is not maintainable - The trial court held that the agreements complied with the provisions of the aforesaid Article. Its decision was upheld by the High Court where the matter was taken on the revisional side.
(3.) Para 1 of the main agreement which was executed on March 22, 1960 was as follows: "An agreement made on 22nd day of March, 1960 between Messrs. Daveco's Garments, Jaipur (hereinafter called the approved Contractor which expression shall, where the context so admits, be deemed to include his heirs, successors, executors and administrators) of the one part and the Governor of the State of Rajasthan (hereinafter called the Government which expression shall, where the context so admits be deemed to include his successors in office and assigns) of the other part." In Clause 4 (1) it was clearly provided that the payment was to be made by the Government through the Inspector-General of Police, Rajasthan, at the rate set forth in the schedule. In clause 3 (a) the Government agreed that if the contractor duly fabricated the contracted articles and complied with the terms and conditions of the contract the Government, through the Inspector General of Police, would pay to the contractor the amount payable for each and every consignment. The concluding portion of the agreement was as follows: "In witness whereof the parties hereto have set their hand on 22nd day of March, 1960. Signature of the approved contractor. Accepted Witness:1 Witness:2 Sd. I. G. of Police, Rajasthan, Jaipur.";


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