ALLAHABAD CANNING COMPANY Vs. CHIEF DIRECTOR OF PURCHASE ARMY PURCHASE ORGANISATION DEPARTMENT OF DEFENCE
LAWS(ALL)-2007-10-51
HIGH COURT OF ALLAHABAD
Decided on October 12,2007

ALLAHABAD CANNING COMPANY Appellant
VERSUS
CHIEF DIRECTOR OF PURCHASE ARMY PURCHASE ORGANISATION DEPARTMENT OF DEFENCE Respondents

JUDGEMENT

- (1.) H. L. Gokhale, C. J. Heard Mr. Madhur Prasad in support of this petition. Mr. S. K. Mishra appears for the respondent.
(2.) THE petitioner claims to have supplied 54 (M. T.) of Pineapple Jams to the Chief Director of Purchase of Armed Forces on the basis of agreement entered into on 23. 12. 2005. THE supply was supposed to have been made in glass jars. THE Armed Forces made the payment for the supply excluding 11 (M. T.) of this supply. THE supply was made to the desired stations at Dehradun and Guwahati on 18. 5. 2006 but by letter dated 28. 7. 2006, the petitioners were intimated that the supply as stated above had gone bad within the warranty period. THE petitioner should lift the same within 15 days or else the said stock will be destroyed. This is what is specifically stated in paragraph 6 of the petition. Some discussions and correspondence followed between the parties but the fact remains is that the payment was not approved. By their letter dated 11. 8. 2006 addressed to the petitioners, the Army Purchase Organization of the Defence Ministry called upon the petitioners as follows : "in accordance with the warranty clause of the A/t, you are requested to refund Rs. 5,30,843 (Rupees Five Lakh thirty thousand eight hundred forty three only) as the cost of the quantity gone bad, to C. D. A. (Hqrs.) '6' Block, New Delhi within 15 days of receipt of the communication. You are also requested to remove the consignments from the Supply Depots (mentioned above) failing which the cost of removal of the said stock shall be additionally recovered from you. The removing cost shall be decided by the above mentioned supply depot, if the stock is not removed by you within 45 days of the receipt of the letter. "
(3.) THAT very letter stated in para 1 of the footnote that the above amount may please be recovered from the firm's bill, if not deposited by them. Sales Tax and any other charges, if already paid, may also be recovered in addition to the aforesaid amount of Rs. 5,30,843. In supplementary-affidavit, it has been stated in paragraph 5 that this amount has since been recovered from Company's other bill. Mr. Madhur Prasad, learned counsel for the applicants stated that this has been so done since the applicants' Company is having a continuous relationship with the Army Purchase Organisation.;


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