SHREE LAXMI IRON & STEEL WORKS PVT LTD Vs. RESEARCH DESIGNS & STANDARD ORGANISATION (RDSO)& O
LAWS(CAL)-2018-5-71
HIGH COURT OF CALCUTTA
Decided on May 18,2018

Shree Laxmi Iron And Steel Works Pvt Ltd Appellant
VERSUS
Research Designs And Standard Organisation (Rdso)And O Respondents

JUDGEMENT

Jyotirmay Bhattacharya, C.J. - (1.) This intra-court appeal is directed against the judgment and/or order dated 7th November, 2016 passed by learned Single Judge of this Court. By the said order, the order of arrest of supply of the Metal Liners by the plaintiff to the Railway authority which was imposed on the plaintiff by the Research, Designs and Standard Organisations (RDSO) vide letter dated July, 4th/9th , 2012 was made effective with immediate effect. The plaintiff /appellant was also directed to pay cost of the said interlocutory proceeding assessed at Rs.5 lakh to RDSO. The plaintiff was directed to deposit a sum of Rs. 1 crore by way of security as a condition for resuming supply of its product to Railways, besides other conditions imposed on the plaintiff for improving quality of its product and for keeping constant vigil upon the products to be supplied by the plaintiff to the Railways authority and the consequence for supply of inferior quality product.
(2.) Admittedly, the plaintiff supplied huge quantity of metal liners to Konkon Railway Corporation Ltd. Part of such supply was utilized by the railway authorities in the railway track within western railway jurisdiction and part of such supplies remains unutilized. The railway authorities decided not to use those unutilized metal liners in their railway track as according to them, the metal liners which were supplied to the railway authorities were defective and not in conformity with the measurement and specification as prescribed by the RDSO. Some samples of such metal liners were picked up by the vigilance cell of RDSO for testing. The first set of samples was tested by RDSO. RDSO found that those samples of metal liners were not in conformity with the norms of IRS specification for metal liners.
(3.) Referring to clause 20 of "the general guidelines for vendor development, QC-G-7.1-1 Rev.2 effective from 15th September, 2011", the plaintiff was advised to stop all further production of metal liners to drawing no.RT-3738 at its firm as precautionary measures to avoid production and supply of potentially inferior product with immediate effect.;


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