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2011 Supreme(Pat) 825

PATNA HIGH COURT
Prakash Chandra Verma, J.
Food Corporation Of India
Versus
North Bihar Trans. Syndicate
First Appeal No. 868 of 1980
Decided On : April 27, 2011

The approval requirement of the transport contract stood waived at the completion of the contract, and the Plaintiff was entitled to the agreed transportation charges.

Headnote:

approval - Transport Contract - Indian Partnership Act - [Indian Partnership Act, 1932, Section 4] - The court discussed the approval requirement of the transport contract under the Indian Partnership Act, 1932, Section 4. It found that the District Manager had the authority to fix the transportation charges and that the requirement of approval of the rate stood waived at the moment the work order was placed and work was completed.

Fact of the Case:

The Plaintiff was appointed as an ad hoc handling and transport contractor for Sugar Godown. The Plaintiff alleged that the District Manager fixed the transport charges at 10 paise per quintal per kilometer, but the payment was made at a lower rate. The Plaintiff filed a suit for the balance amount due.

Finding of the Court:

The trial court found that the Plaintiff's claim for transportation charges at the agreed rate was justified and that the Plaintiff was entitled to the decree sought.

Issues: 1. Suit maintainability 2. Valid cause of action 3. Barred by limitation 4. Entitlement to a decree 5. Other reliefs

Ratio Decidendi: The court held that the approval requirement of the transport contract stood waived at the completion of the contract, and the Plaintiff was entitled to the agreed transportation charges.

Final Decision: The appeal was dismissed as it was devoid of merit.

JUDGEMENT

Prakash Chandra Verma, J.

1. This appeal on behalf of the Appellant has been pressed only on one ground that the trial court has erred in relying on agreement, Ext.1, and holding that liability for payment to the Plaintiff Respondent was at the rate of 10 paise their rate has not been approved and the said agreement was not approved by the competent authority. It is submitted that perusal of the same shows that the agreement was for 10 paise per quintal to carry sugar from one place to another place. The aforesaid agreement was not approved by the Regional Manager, Food Corporation of India, which was condition required in the tender of the notice.

2. I have gone through the judgment passed by the trial court. The trial court has dealt with the issues in detail and has recorded a finding that the work under the contract was completed within the stipulated period of the Plaintiff carried out the work after issue of work order on the basis of agreement executed between the parties contained in Ext.1. The dispute was raised after the work was completed and when the payment was to be made.

3. The fact of the appeal is that the Plaintiff was appointed as an ad hoc handling and Transport contractor for Sugar Godown at Birpur, Saharsa, by the District Manager, Food Corporation of India at Purnia by his letter No. E - 1 (5)/73-T.C.S./931 dated 20.6.73. It is alleged that the Transport Charges for Transporting Sugar from Food Storage depot at Forbesganj in the District of Purnea to the Sugar Godown at Birpur in the district of Saharsa was fixed @ 10 paise per quintal per Kilometer and that it was clearly mentioned in the said letter that the rate was fixed subject to the approval of the Regional Manager F.C.I., Patna. Further case of the Plaintiff is that the Plaintiff being a registered Firm under the Indian partnership Act has been transporting Sugar from the Food storage depot Forbesganj to the Sugar Godown Birpur as and when directed by the authorities of F.C.I. and has been submitted his bills for the transport charges @ 10 paise per quintal per K.M. It is alleged that the District Manager Food Corporation of India at Purnea has been paying to the Plaintiff for the said transport charges @ 5 paise per quintal per K.M. with an assurance that the balance amount will be paid after the approval of the Regional Manager Food Corporation of India Patna is received. It is further alleged that the Plaintiff has been always writing to the District Manager F.C.I., Purnea to pay the balance amount of transport charges of sugar from Food storage Depot Forbesganj to sugar go down at Birpur calculated @ 10 paise per quintal per K.M. and the District Manager F.C.I. of Purnea has always been writer to the Plaintiff that the letter of the Plaintiff regarding payment of transport charges @ 10 paise per quintal per K.M. for transport of Sugar from Food Storage Depot Forbesganj to Sugar Godown Birpur has been forwarded to the Regional Manager, F.C.I., Patna for consideration vide letter No. F-1(5)/T.C.1/ Birpur/76/4599 dated 10.12.76. It is asserted on behalf of the Plaintiff that the Regional Manager, F.C.I., Patna by his letter No. D. Sugar (T/A)/76 Pat. Dated 22.1.1977 addressed to the District Manager, F.C.I., Purnea informed him that it was not understood as to how he approached the Regional Manager for sanction of rates when the payment of ad-hoc contractor was within the competence of the District Manager. The Regional Manager, F.C.I. has also sent a similar letter to the District Manager, Purnea dated 25.3.1977. It is further pleaded on behalf of the Plaintiff that the Regional Manager, F.C.I. Patna by his letter No. D- Sugar (T/A),76-77 pat dated 14.7.1977 addressed to the District Manager, F.C.I., Purnea clearly wrote to the District Manager, Purnea as follows:

"In continuation of this office letter of even number dated 25.3.1977 on the above subject you are once again requested to settle the issue at your own level and intimate to













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