- (1.) These appeals are directed against a judgment and order dated 20-9-1995 passed by a Division Bench of the Calcutta High Court in FMAT No. 1161 of 1992 and FMAT No. 794 of 1992 whereby and whereunder the appellant herein was directed to refund the amounts advanced to it by respondents 1 to 55 with interest at the rate of 12 per cent per annum from the dates on which such advances were made up to the date of actual payment.
(2.) The factual matrix involved in the matter lies in a very narrow compass. The Ministry of Human Resource Development, Department of education, Government of India floated a scheme on or about 22-3-1988, purported to be for securing equitable distribution of white printing paper; the relevant features whereof are as under: "1.The white printing paper will be allocated to the States/uts for the printing of school textbooks, exercise books and examination answer-sheets. 2. On the basis of the allocations made by this Department the states/uts in turn shall reallocate the same to the various agencies concerned in their respective States/uts or the State-level Committees, set up for the purpose. 3. Allottees in the States/uts will be supplied paper by Hindustan paper Corporation Ltd. at ex-mill price of Rs 7560 per MT inclusive of excise duty and cess. 4. The allottees shall place firm orders with the Director (Marketing) , hindustan Paper Corporation Ltd. , 75-C, Park Street, Calcutta 700 016. It will be obligatory on the part of the allottees to furnish information and make advance payment along with the orders as follows: (a) The size of the paper and its exact quantity. (b) Destination of station where the goods are to be dispatched. (c) Mode of dispatch such as by rail or by road. (d) 25% advance money by demand draft in favour of Hindustan paper Corporation Ltd. , payable at Calcutta. (e) The name and the full address of the bank through which the dispatch documents for the balance amount are to be negotiated. (f) 'c' form for concessional CST. "
(3.) Pursuant to or in furtherance of the said Scheme, the respondents allegedly placed orders for supply of white paper upon the appellant herein. The appellant did not make any supply of white paper to the respondents whereupon a writ petition was filed before the Calcutta High Court by the respondents. The said writ petition was allowed ex parte by learned Single judge of the High Court directing the appellant Corporation herein to take immediate steps for release of white concessional paper to the respondents wherefor allegedly the advance money had already been accepted by them for the quarters April to June 1989 and October to December 1989. An application for recalling of the said order was dismissed by the learned single Judge.;