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1999 Supreme(SC) 9

1999(10) Supreme 476
SUPREME COURT OF INDIA
B.N. Kirpal & D.P. Mohapatra, JJ.
Sangamesh Printing Press -Appellant
versus
Chief Executive Officer, Taluk Development Board -Respondent
Civil Appeal No. 4844 of 1989
Decided on 6-1-1999

Headnote:Code of Civil Procedure, 1908-Order 1 Rule 10 and Order 27, Rule 5A r/w Section 70 of the Contract Act-Suit for money against goods supplied under contract with Taluk Board-Findings in favour of plaintiff by trial Court but dismissal of suit for non-impleading state as a party-Appeal to High Court-Plaintiff filing petition under Order 1 Rule 10 to implead state-High Court deciding issue as to existence of contract and giving finding against plaintiff dismissing appeal-Plea of plaintiff u/s 70 Contract Act not considered-Application under Order 1 Rule 10 also not disposed of-Held: If High Court had chosen to allow application under Order 1 Rule 10 different consequence may have followed-High Court should have decided application under Order 1 Rule 10 and then proceeded to hear appeal-Serious prejudice caused to appellant-Matter remanded to High Court. (Paras 8 & 9)

       

ORDER

1. The appellant (plaintiff) which is a registered firm had filed a suit against the Chief Executive Officer, Taluk Board for recovery of Rs. 51,036.60 being the price and interest thereon in respect of the printed forms and registers which had allegedly been supplied to the defendant (respondent herein).

2. In the plaint which was filed, it was, inter alia, alleged that an agreement had been entered into between the plaintiff and the defendant on the basis of which the aforesaid goods were supplied. In para 2 of the plaint, it was stated that a contract had been entered into between the parties after approval of the Taluk Board.

3. In the written statement which was filed, various objections were taken. It was, inter alia, submitted that no valid contract had been entered into and supply had been made by the plaintiff unauthorisedly. There was also an objection taken with regard to the validity of the notice issued by the plaintiff.

4. On the pleadings of the parties, the following issues were framed:

"(1) Whether the plaintiff firm is a registered partnership firm?

(2) Whether the plaintiff proves that the defendant has entered into a contract of supply of forms and registers as alleged in plaint para 2?

(3) Whether the notice issued by the plaintiff is legal and valid?

(4) Whether the plaintiff is entitled to interest?

(5) Whether the defendant proves that the plaintiff has unauthorisedly delivered the bundles of forms and registers in the office of the defendant?

(6) Whether the defendant proves that this Court has no territorial jurisdiction to try the suit as contended in para 11 of the written statement?

(7) What order or decree?"

5. Except for Issue 3, the trial court decided Issues 1, 2, 4, 5 and 6 in favour of the plaintiff, but came to the conclusion that as the suit had been filed against a government official, the plaintiff should have complied with the provisions of Order 27 Rule 5-A CPC and impleaded the State as a party. As the State had not been impleaded in the said suit, therefore, the suit was liable to be dismissed. For this reason, Issues 3 and 7 were decided against the plaintiff.

6. In appeal, the High Court chose not to decide the correctness of the decision of the trial Court with regard to Issues 3 and 7. It came to the conclusion that Issue 2 had been wrongly decided in favour of the plaintiff, inasmuch as the plaintiff had led no evidence to show that the Taluk Board had ever approved the execution of the contract between the parties. For this reason, the appeal filed by the appellant herein was dismissed.

7. It is submitted by the learned counsel for the appellant that in order to get over the difficulty faced by it as a result of the decision of the trial Court with regard to Issue 3, an application under Order 1 Rule 10 CPC had been filed in the High Court in the instant case praying for impleadment of the State of Karnataka as one of the defendants. It is not in dispute that the said application has not been decided, but the appeal has been disposed of. We find that the decision of the High Court with regard to Issue 2 appears to be correct, inasmuch as no evidence has been led by the appellant to show the approval of the Taluk Board to the contract which was alleged to have been entered into between the parties. But the matter does not end here. Learned counsel for the appellant sought to invoke the provisions of Section 70 of the Contract Act and it was contended that the trial Court had found that the order was placed on the appellant after quotations had been invited. He submits that it is clear that the work was not undertaken by the appellant gratuitously and such supplies had been made by it, then applying the principle of quantum meruit in respect to the work done, the appellant was entitled to be paid in respect thereof. It is, therefore, contended that while deciding Iss






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