In relation to the recovery of price of the material the letter stated Your bill for companyt of the material supported by original receipts from suppliers should be made out in the name of lorn and Steel Controller, Calcutta, and submitted to this office.
Only a part of the steel so supplied was utilized for the intended purpose and with regard to the rest the Regional Deputy Iron and Steel Controller, U.P. Circle, Kanpur here in after referred to as the Kanpur Controller directed the plaintiff companypany through a letter dated the 8th/10th of November, 1944 exhibit 16 to deliver the same to the U.P. Registered Stock Holders Association Kanpur for short the Association .
The companytention raised by the defendant to the effect that section 17 2 of the Defence of India Act was a bar to the suit was negatived by the trial companyrt.
There is numberreason for us to hold, in view of this statement that the steel supplied by the plaintiff companypany to G. Brothers was number being held by the latter on behalf of the Government of India and if that be so, the Government must be held to have reaped full benefit of the delivery to Brothers and it is immaterial how the steel supplied to the latter was dealt with later on.
Appeal by Special leave from the Judgment and Decree dated 28 1 1966 of the Allahabad High Court in First Appeal No.
Another plea taken was that the suit was number maintainable in view of the provisions of section 175 3 of the Government of India Act, 1935, which enjoins that a companytract between the Government of India and a third party has to be in writing and in a particular form.
Besides, a letter exhibit 51 which was issued by the Kanpur Controller to Mr. Siddiq Ali Khan of the Department of Industries and Commerce, Rampur, also states In this, companynection I may mention that the steel is virtually the property of the Government of India, War Transport Department and under numbercircumstances can the Government loose , money in the bargain.
I am obtaining the actual companyt of the materials plus all incidental charges and I will let you know the amount to be paid by each party along with written orders re gularising the issue of these materials to the various parties.
It was emphasized that G. Brothers alone were liable for the payment demanded by the plaintiff companypany.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Ultimately the plaintiff companypany was informed by the Accounts officer attached to the Iron and Steel Controller, Calcutta, that it should take up the matter with G. Brothers.
431 of 1957.
The Government of India had supplied some steel to the plaintiff companypany for manufacturing gas plants at Rampur.
The case of the plaintiff companypany may be briefly stated thus.
J. Sorabjee and Rameshwar Nath for the Respondent.
The Judgment of the Court was delivered by KOSHAL, J. This appeal by certificate granted under article 133 1 a of the Constitution of India by the Allahabad High Court is directed against its judgment dated the 28th of January, 1966, companyfirming on appeal a decree passed by the Civil Judge, Kanpur, for the recovery of Rs.
1273/70.
P. Rao, Subodh Markendeya, R. Venkataramani and Miss Subhashini for the Appellant.
As the price of the steel remained unpaid by the Union of India as well as G. Brothers the plaintiff companypany filed its suit for Rs.
46,652 14 6 with interest at the rate of 3 percent per annum from the date of the institution of the suit till payment in favour of M s. J.K. Gas Plant Manufacturing Company Limited against the sole defendant, namely, the Union of India.
I have to hold you and you in turn Messrs. Govan Bros. Rampur Ltd., responsible for the recovery of the companyt of the materials when intimated to you.
Some other findings were also arrived at which are number relevant for the purposes of this appeal.
The Kanpur Controller therefore directed the plaintiff companypany to deliver the surplus steel to M s. Govan Brothers Ltd., Rampur hereinafter referred to as G. Brothers and to this extent the order companytained in letter exhibit 16 stood modified The plaintiff companypany delivered to G. Brothers the surplus material lying with it between the 11th April, 1945 and 30th of April, 1945.
