THE HONOURABLE Dr. JUSTICE G. RADHA RANI CIVIL MISCELLANEOUS APPEAL No.835 of 2010

JUDGMENT:

This Civil Miscellaneous Appeal is filed by the appellant – appellant –

respondent questioning the legality and validity of the orders dated 25.02.2010 passed in O.P.No.381 of 2008 by the learned District Judge, Adilabad.

2. The brief facts of the case are that the appellant agreed to purchase 2,700 quintals of cotton seed from the respondent – M/s.Cotton Corporation of India Limited (in short “Corporation”), Adilabad during the year 2003-04. The appellant paid an Earnest Money Deposit (for short “EMD”) of Rs.10,000/- on 30.01.2004. The Corporation would intimate to the appellant about the availability of cotton seed as soon as the cotton seed was available after ginning, and would inform the appellant to lift the cotton seed as per the contracts entered into, by paying full value of the cotton seed. There was a shortage of 100 quintals of cotton seed. The appellant failed to lift the balance quantity of 2,600 quintals of cotton seed and committed breach of contract. The Corporation issued a final notice dated 12.05.2004 requesting the appellant to lift the cotton seed within 15 days. The same was returned as un-claimed. As the appellant failed to lift the cotton seed, the Corporation resold the un-lifted quantity of cotton seed in public auction after giving wide publicity among the traders by giving paper publication in Adilabad and Maharashtra State. Due to which, the respondent sustained loss of Rs.2,54,138/- (price different after value of resale). The Corporation issued a letter dated 10.06.2004 about the loss sustained by resale demanding payment. But the appellant failed to pay the said amount. Hence, the Corporation got issued a notice dated 08.07.2004 to the appellant through their counsel demanding the said amount. The appellant received the said notice and issued a reply notice through their counsel denying her liability. Hence, the Corporation approached the Arbitrator to pass an award claiming an amount of Rs.8,79,688/- together with interest and costs.

3. The appellant, who was the respondent in O.S.No.4 of 2006 (award passed by the Arbitrator) filed her counter contending that she never entered into any contract for purchase of cotton seed from the claimant – Corporation during the year 2003-04. She started the business late in the year 2004. For the first time, she deposited an amount of Rs.10,000/- towards EMD with the claimant – Corporation on 30.01.2004. After issuing the cheque to the Corporation, she heard from other business people that the quality of the cotton seed was damaged, and so, she never purchased any cotton seed at the claimant – Corporation and that she was not at all liable for the claim.

4. Basing on the said pleadings, the learned Arbitrator framed the issues as follows:

(i) Whether the respondent entered into contracts with the claimant as mentioned in the claim statement on various dates during the cotton season of

2003-04?

(ii) Whether the respondent committed breach of any of the contracts as alleged by the claimant?

(iii) Whether the cotton seed of the claimant – Corporation was in damaged condition during the season 2003-04?

(iv) Whether the claimant is entitled for any compensation from the respondent on account of resale of cotton seed and if so to what amount?

(v) To what relief?

5. A Senior Assistant of the claimant – Corporation was examined as PW.1. Exs.A1 to A50 were marked on behalf of the Corporation. The (appellant) respondent became ex-parte and failed to adduce any oral or documentary evidence.

6. On considering the oral and documentary evidence on record, the learned Arbitrator observed that the contract value for which the respondent purchased the cotton seed of 2,600 quintals was Rs.23,44,000/- and the value obtained in resale of the cotton seed was Rs.17,14,600/-. As such, the price difference was worked out at Rs.6,29,800/-. The final notice was dated 12.05.2004, wherein the time was gran