- (1.) This is appeal by defendant Badri Ram alias Badri Dass alias Badri Nath against whom the claim filed by Food Corporation of India for recovery of Rs. 11,78,672.68p, was decreed by the first Appellate Court with interest @ 4% per annum from the date of filing of the suit till its realisation.
(2.) The case of plaintiff Food Corporation of India, in brief, is that in response to the tender enquiry, defendant Badri Ram alias Badri Dass submitted tender agreement to work as contractor for loading, transportation of foodgrains and allied materials of Corporation in and around Banga, District Jalandhar. He offered to work as contractor @ 9% below the schedule of rates. The tender was opened in the presence of defendant on 12.08.1986 at 03.00 p.m. and accepted by the plaintiff. As per the terms of the tender, the contractor had to work for one year with right of extension, for a further period of three months at the approved rate. Acceptance was conveyed to the defendant on 12.08.1986. Vide telegram No. S&C/2/7/10/86 dated 06.09.1986, the defendant was asked to join duty within 7 days and also to complete other formalities. The defendant had deposited Rs. 10,000/- as security at the time of submitting tender and also deposited Rs. 15000/- on 10.09.1986 in response to the acceptance of his tender and submitted joining report on 12.09.1986 in the forenoon. He started working at the Food Storage Depot, Banga as per the terms of the agreement by lifting the goods from Food Storage Depot and submitted bills from time to time, out of which 5% was deducted towards 50% of the balance security. In this manner, defendant had deposited total security amount of Rs. 28,134/-. He carried out the work upto 21.10.1986 and then stopped working on the ground that truck owners had formed a union and increased the transportation rates, thereby committed breach of contract. On 21.10.1986, he gave in writing that he was not going to work and other arrangement be made by the plaintiff. He was asked to resume the work but he did not turn up and under exigencies, the Corporation (plaintiff) was compelled to make alternate arrangement at the costs of the defendant as per the terms and conditions of the agreement. Services of Contractor Gian Chand were taken to get the unfinished work completed @ 85% to 97% above the scheduled rate. Gian Chand completed the unfinished work from 22.10.1986 to 11.09.1987 i.e. for the unexpired period of contract and had to pay Rs. 12,04,599.82p in excess, over and above the rate settled with the defendant. After adjusting the security amount, the plaintiff claimed the recovery of Rs. 11,78,672.68p.
(3.) The defendant filed written statement thereby denying all the facts including the submitting of any tender, signing of agreement, depositing of tender amount and security amount, giving of joining report and starting work of loading. He alleged that he never worked with the plaintiff and he has been unnecessarily dragged in this litigation. He alleged a racket by the officials of the plaintiff and Gian Chand contractor of Banga at the behest of whom, the entire drama was played. The lowest tender was submitted with the active connivance of Gian Chand in the name of defendant by some imposter. It was not feasible to complete the work of transportation at such a low rate. The defendant alleged that he is earning his livelihood by selling sweet lime water and cold drinks on a cart before the office of Food Corporation of India, Banga. The entire work of loading and unloading was being done by Gian Chand. Under a plan, Gian Chand got a contract at high rate after doing the work for few days on behalf of imposter. The defendant had got no shop, no house, no bank balance but he has been shown having property worth lacs. The suit has been filed by the officials of Food Corporation of India to save their skin.;