Back
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE SRINIVASAN & THE HONOURABLE MR. JUSTICE A.R. LAKSHMANAN
N.Raju Reddiar and Another
Versus
The Tamil Nadu Electricity Board represented by its Chairman and Another
O.S.A.No. l12 of 1987 and Memo of Cross-objections
Decided On : 06-09-1995
TENDER - TRANSPORT OF IRON AND STEEL MATERIALS - MULTI SLAB BASIS - SINGLE SLAB BASIS - INTERPRETATION OF AGREEMENT - FREIGHT CHARGES - INTEREST - MODIFICATION OF JUDGMENT AND DECREE.
Fact of the Case:
The appellants, who succeeded in part before the learned single Judge of this Court, are the appellants in the above appeal and the respondents in the memorandum of cross objections filed by the Tamil Nadu Electricity Board, who are the respondents in the appeal.
Finding of the Court:
The court held that the tender was invited only for quotation of rates on multi slab basis and not on single slab basis as contended by the respondents. The court also held that the appellants are entitled to freight charges on multi slab basis as agreed upon by the parties.
Issues: 1. Whether the plaintiff is entitled to claim transport charges only on single slab basis? 2. Whether the plaintiff had delivered the steel entrusted to him in specie at proper destination as per the terms of contract? 3. Whether there is any delay on the part of the defendant in settling the bills?
Ratio Decidendi: The court interpreted the agreement between the parties and held that the intention of the parties was to charge under multi slab system. The court also held that the learned Judge erred in holding that the improper drafting should go in favour of the person who drafted such a tender.
Final Decision: The appeal is allowed, the-judgment and decree of the learned single Judge are modified and the suit is decreed as prayed for with interest at 12% per annum from 1. 1980 till the date of realisation, with costs throughout. There are absolutely no merits in the memorandum of cross objections and therefore, we dismiss the same, however, without costs.
AR.Lakshmanan, J.
The plaintiffs, who succeeded in part before the learned single Judge of this Court, are the appellants in the above appeal and the respondents in the memorandum of cross objections filed by the Tamil Nadu Electricity Board, who are the respondents in the appeal.
2. The appellants filed the suit C.S. No.678 of 1982 on the file of the Original Side of this Court, for recovery of a sum of Rs.46,08,820 together with interest at 18% per annum from the date of institution of the suit till the date of realisation and for costs. The respondents/ defendants invited tenders (Specification No.P.543) for transport of iron and steel materials including unloading, weighment and stocking from various stockyards of the supplies to the destination stores of the respondents during the period 9. 1978 to 38. 1979. In pursuance of the said tender the 1st appellant submitted his tender form on 17. 1978 along with a letter dated 17. 1978 quoting the following rates:
Rate per kilo metre per ton
(a) 0 to 50 kms Rs.1.26
(b) 51 to 200 krns Rs.0.26
(c) 201 to 400 kms Rs.0.24
(d) 401 to 600 kms Rs.0.19
(e) Beyond 600 kms Rs.0.11 For hill areas, Rs.3.00 per kilo metre per metric ton.
.3. The respondents by their letter dated 28. 1978 accepted the tender submitted by the appellants and entered into an agreement dated 38. 1978 incorporating the terms and conditions. Pursuant to the agreement, the appellants also furnished a bank guarantee for Rs. 1,00,000 and also deposited a sum of Rs.5,000 as Earnest Money Deposit and executed an Indemnity Bond dated 38. 1978 in favour of the respondents and commenced the work of transport of materials. According to the appellants, they transported and carried the materials offered for carriage and delivered the same at various destinations as per the directions given from time to time by the respondents. Under P.543 tender they had transported in all a total quantity of 17,378,821 m.t. of iron and steel material, which includes the materials transported as disclosed in the bill submitted in November, 1979. However, the respondents, without adhering to the terms of the contract, are postponing the payment of the bills. According to the appellants, a perusal of the tender form and the letter dated 17. 1978 submitted by the 1st appellant would clearly show that slab rates were agreed to between the parties as that was the practice of the trade and the 1st appellant had the benefit of such practice on various earlier occasions before the contract in question was entered into. According to the respondents, only a flat rate was agreed to between the parties. The stand taken by the respondents is against the very essence of the agreement. The appellants issued a notice on 23. 1980 and called upon the respondents to effect settlement of the bill amounts with interest. To the said notice, the respondents sent a reply on 5. 1980 containing untenable and misleading averments. Since the bills were not settled, the appellants were constrained to file the suit for recovery of the amounts as mentioned above.
.4. The 2nd respondent filed a written statement denying the allegations contained in the plaint. According to the respondents, the appellants are not entitled to claim on multi slab basis, that they are entitled only on single slab basis as contemplated by the Tamil Nadu Electricity Board and that the multi slab rates were not accepted and not covered by the agreement executed. The Superintending Engineers have been passing the bills on single slab basis on the instructions from the headquarters office. In other words, according to the respondents, the payments have been made only on single slab basis and that the appellants having remained silent during the entire tenure of the contract period, had raised this issue only now in the suit. According to the respondents, as per their office records, a total quantity of 16,765,547 m.t. of iron and steel had been transported against the contract P.543. Th
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
