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2002 Supreme(MP) 695

K.K.LAHOTI
FOOD CORPORATION OF INDIA – Appellant
Versus
MUNNILAL SINGH – Respondent


Advocates Appeared:
Imtiaz Hussain, R.K.GUPTA, R.P.JAIN

K. K. LAHOTI, J.

( 1 ) DEFENDANTS have filed present appeal challenging the judgments and decrees passed by the Courts below by which suit filed by the respondent No. 1/ plaintiff was decreed for Rs. 15,400/ -.

( 2 ) SHORT facts of the case are that plaintiff entered into an agreement with appellants for transportation of goods from Itarsi railway station to the godowns of appellants. For this purpose respondent no. 1 submitted a guarantee through respondent No. 2 new Bank of India. Contention of the plaintiff was that he has completed the work as per conditions of the agreement and was entitled for refund of bank guarantee and in spite of several requests, appellants have not refunded the guarantee amount. On these grounds suit was filed for recovery of rs. 16,900/ -.

( 3 ) APPELLANTS denied the claim contending that plaintiff has committed breach of the agreement. He has not transported 120 bags of sugar in time to godown of defendant at Pipariya and there was delay in transporting the aforesaid sugar. He has misused stock of sugar resulting loss to the appellants and, in consequence, the bank guarantee was forfeited. Respondent bank contended that it was unnecessarily made party.
















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