RAGHUNATH PRASAD PHOOLCHAND LTD Vs. GENERAL MANAGER SOUTH EASTERN RAILWAY
HIGH COURT OF CALCUTTA
RAGHUNATH PRASAD PHOOLCHAND LTD
GENERAL MANAGER, SOUTH EASTERN RAILWAY
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(1.)The Court: The application is directed against a cancellation of purchase order sent by the respondents which is the last annexure to the petition. The writ petitioners' case is that there was no scope for any cancellation as no contract had been at all entered into and no purchase order in the first place could have been issued.
(2.)The respondents have stated in the aforesaid order of cancellation that risk purchase was being made at the cost of the writ petitioner and that amounts would be withheld from the writ petitioners' outstanding bills. The purchase order was in respect of a supply of 40,000 brake block boxes.
(3.)The petitioner quoted its offer by its letter dated 18th April, 1991 which contained certain price variation clauses. After the writ petitioner obtaining an extension of the validity period far 90 days they received a communication dated 18th July, 1991 wherein the respondents accepted the terms offered by the writ petitioner with only these added words "subject to documentary proof" being inserted in the price variation clause.
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