V.S.Sirpurkar, CJ. - (1.) Heard the appeal finally with the consent of both the sides. Being aggrieved by the order passed by the learned single Judge of this Court allowing the writ petition filed by the respondent herein, M/s. Vijay Shree Limited (thereinafter referred to as 'Company' for short) the appellants come up before us by way of this appeal. The two appellants are the officers of Union of India and have filed this appeal on behalf of Union of India. By the instant Judgment and orders, the learned single Judge directed the appellants to make payment of the amount to the Company for supply of second batch of 390 bales allegedly supplied by it. It was further directed that in default of payment, the appellants would pay interest at the rate of 12% per annum. Shortly stated the facts are as under :
(2.) The Company, Vijay Shree Limited, referred to as 'Company' herein, is a limited Company and owned a jute mill. It is also a sick Company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 and at the relevant time, was running the jute mill on the basis of a scheme approved by the Board of Industrial Financial Reconstruction. It received an order bearing No. S.O. 565 (E) dated 12.6.2000 to produce jute bags of the mentioned specifications and supply them by way of a sale as per the direction of Director of Supplies and Disposals, Kolkata. It appears that the Deputy Director of Supplies and Disposals, Kolkata directed the writ petitioners to sell 780 bales of gunny bags vide the order dated 3rd June, 2003. This consignment was meant for a party, that is Assistant Director (supplies) on behalf of the Governor of Punjab. The consignee was the Managing Director, Punjab State Cooperative Supply and Marketing Federation at Sangur. It seems that the writ petitioner sent first consignment of 390 bales to Sangur on 23rd June, 2003.
(3.) Petitioner's case is that he sent the railway receipts, bill raised against the discharge of goods along with the quantity assurance certificate to the consignee, Punjab State Cooperative Supply and Marketing Federation ('Marketing Federation' for short). The writ petitioner pleaded that the petitioner was informed by subsequent letters that the 390 bales which were received by the consignee were badly affected by rains and that those 390 bales were lifted by the consignee to avoid further damages and stacked separately. It was revealed that the consignee had requested the Director of Supplies and Disposals to stop payment of 390 bales and had also requested to direct the writ petitioner to depute their representative for a joint inspection as per the terms of contract. It seems that thereafter there was correspondence in between the writ petitioner and the present appellants about this consignment of 390 bales and ultimately, the writ petitioner received a letter dated 12.9.2003 wherein the writ petitioner was informed that the sum of Rs.35,85,447/- had been withheld from Bill No. L/78 pending finalisation of the case of recovery due from the writ petitioner. It is the case of the writ petitioner that Bill No. L/78 had nothing to do and that was pertaining to an entirely different and independent contract which had no relation with the earlier contract of the supply of 780 bales. The further case of the writ petitioner was that the petitioner, in fact, was already paid the bill amount in respect of the 780 bales and it is only out of the consideration of the subsequent supplies made by the writ petitioner, deduction was made by withholding the payment. According to the writ petitioner, this could not have been done and therefore, the petitioner filed the writ petition praying for quashing of the order withholding the payments and consequently, for releasing the payment of aforementioned sum.;