V S RAJU AND SONS ENGINEERING WORKS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The short question for consideration is whether a contract for supply, erection and commissioning of a boiler is a contract for sale or a works contract. Despite adjudication by the Courts in several cases whether any given transaction is a contract for sale or a works contract, no definite or fixed principles are evolved to determine the nature of the transaction. If we may say so, the only settled principle is that each case depends upon the facts of that case. Nevertheless, Courts have laid down the board guidelines to be borne in mind while determining this question.

(2.) The facts may now be briefly stated :

(3.) In the instant case, there is no written agreement. The question has to be adjudicated with reference to the correspondence between the parties. The disputed amount of Rs. 1,00,228 was received from six customers. The letters of indent and acceptance are similar in all the transactions. It would therefore suffice to refer to the correspondence in one case. "V. S. RAJU & SONS, ENGINEERING WORKSHOP. Prop : V. S. RAJU. C.S.T. No. 1450. Morrispet, Tenali-2. R.C. GTT. I. 1305. 15-3-1974. To M/s. Kalpana Tanning Materials, Vizianagaram. Dear Sir, Quotation for second-hand Lancashire boiler No. C.P. 616 regarding. * * *