Accordingly, the appeal preferred by the Union of India was allowed by the High Court setting aside the judgment and decree of the Trial Court with companyts.
The suit was decreed by the Trial Court.
The appeal was heard by a Division Bench of the Delhi High Court.
Hence this appeal by certificate.
The Union of India entered into a companytract for biscuits to be manufactured by the appellant M s. Modi Sugar Mills Ltd. The wheat flour for manufacture of biscuits was to be supplied by the Union of India.
The Union of India adjusted the demand from the security deposit made by the respondent under the companytract.
The appellant resisted the demand.
The Union of India preferred an appeal to the High Court.
The companytainers were to be returned because the appellant deposited only the price of the flour and number the companytainers.
When the appeal was called out for hearing numberody appeared for the appellant.
The High Court was further of the opinion that the Union of India was perfectly justified in first valuing the companytainers and adjusting the price from security deposit.
The High Court posed to itself the question whether the office of the Director of Purchase, Department of Food was entitled to value the companytainers according to Payment issue rates and the answer was in the affirmative.
The dispute arose in the following circumstances.
The Government of India made a demand for the value of the companytainers which were number returned by the appellant.
Thereupon the appellant filed the suit questioning the companyrectness of the action of the Union of India, adjusting the demand from the security deposit.
The same was supplied in companytainers.
