Judgement :

These appeals are directed against a judgment and order dated 20th September, 1995 passed by a Division Bench of the Calcutta High Court in FMAT No. 1161/92 and FMAT No. 794/92 whereby and whereunder the appellant herein was directed to refund the amounts advanced to it by respondent Nos. 1 to 55 with interest at the rate of 12 per cent per annum from the dates on which such advances were made upto the date of actual payment.

2. The factual matrix involved in the matter lies in a very narrow compass. The Ministry of Human Resource Development, Department of Education, Government of India floated a Scheme on or about 22nd March, 1988, purported to be for securing equitable distribution of white printing paper; the relevant features whereof are as under :

"1. The white printing paper will be allocated to the States/UTs for the printing of school text books, exercise books and examination answer sheets.

2. On the basis of the allocations made by this department the States/UTs in turn shall re-allocate the same to the various concerned agencies in their respective States/UTs or the State Level Committees, set up for the purpose.

3. Allottees in the States/UTs will be supplied paper by the Hindustan Paper Corporation Ltd. at ex-mill price of Rs. 7560/- per MT inclusive of Excise Duty and Cess.

4. The allottees shall place firm orders with the Director (Marketing), Hindustan Paper Corporation Ltd., 75-C, Park Street, Calcutta-700016. It will be obligatory on the part of the allottees to furnish information and make advance payment along with the orders as follows :

a) The size of the paper and its exact quantity.

b) Destination of station where the goods are to be despatched.

c) Mode of despatch such as by rail or by road.

d) 25% advance money by demand draft in favour of Hindustan Paper Corporation Ltd., payable at Calcutta.

e) The name and the full address of the Bank through which the despatch documents for the balance amount are to be negotiated.

f) C Form for concessional CST."

3. Pursuant to or in furtherance of the said Scheme, the respondents allegedly placed orders for supply of white papers upon the appellant herein. The appellant did not make any supply of white paper to the respondents whereupon a writ petition was filed before the Calcutta High Court by the respondents. The said writ petition was allowed ex parte by a learned single Judge of the High Court directing the appellant-Corporation herein to take immediate steps for release of white concessional papers to the respondents wherefor allegedly the advance money had already been accepted by them for the quarters April to June, 1989 and October to December, 1989. An application for recalling of the said order was dismissed by the learend single Judge.

4. Aggrieved thereby and dissatisfied therewith, the appellant preferred the aforementioned appeals before a Division Bench of the Calcutta High Court. The Division Bench of the High Court noticed the contention of the appellant to the effect that having regard to the increase in the cost of paper the respondents would unjustly enrich themselves if paper is supplied to them at the concessional rate. The Division Bench of the High Court further noticed that the appellant herein had in fact already refunded a large amount to the allottees without any interest subsequent to the discontinuation of the Scheme, but proceeded to hold that by such act it could not absolve itself from the liability to compensate the respondents in cash if not in kind in consideration of their default. Relying upon or on the basis of some decisions of this Court, the High Court directed the appellant to refund the amounts advanced to it by each of the respondents with interest at the rate of 12 per cent per annum from the dates on which the advances were made upto the date of payment within a period of eight weeks from the date.

5. Before adverting to the matter further, we may notice that as far back as 22nd March, 1991, the appellant herein expr