S.B. Civil Writ Petition Nos. 1616 and 1615/2001. Case: Man Structurals Ltd. and Ors. Vs Rajasthan Rajya Vidyut Prasaran Nigam Ltd.. Rajasthan High Court

Case Number:S.B. Civil Writ Petition Nos. 1616 and 1615/2001
Party Name:Man Structurals Ltd. and Ors. Vs Rajasthan Rajya Vidyut Prasaran Nigam Ltd.
Counsel:For Appellant: Pancham Surana, Adv. and For Respondents: Virendra Lodha, Sr. Counsel assisted by Jai Lodha, Adv.
Judges:Dinesh Mehta, J.
Issue:Contract
Judgement Date:February 08, 2017
Court:Rajasthan High Court
 
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Judgment:

Dinesh Mehta, J.

  1. The petitioners have filed the present writ petition inter alia challenging the demand raised by the respondent Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (hereinafter referred to as the 'RRVPNL or Nigam'), with the following prayers: -

    Prayers (CW 1616/2001)

    a) to quash the demand of Rs. 26,34,248.09 raised by the respondent vide letter dated 06th June 2000;

    b) to quash the order dated 7.2.2001 passed by the Settlement Committee;

    c) to declare that whatever the prices were paid by the respondent to the petitioner were just, proper and reasonable, and

    d) to restrain the respondents from withholding the dues of the petitioner under any contract and to release the payment forthwith;

    e) Any other appropriate interim order or direction which may be considered just and proper in the facts and circumstances of the case may kindly also be issued in favour of the Petitioner applicant.

    Prayers (CW 1615/2001)

    a) to quash the demand of Rs. 26,99,057.75 raised by the respondent vide letter dated 6th June, 2000;

    b) to quash the order dated 6.2.2001 and 8.3.2001 passed by the Settlement Committee;

    c) to declare that whatever the prices were paid by the respondent to the petitioner were just, proper and reasonable, and

    d) to restrain the respondents from withholding the dues of the petitioner under any contract and to release the payment forthwith;

    e) Any other appropriate interim order or direction which may be considered just and proper in the facts and circumstances of the case may kindly also be issued in favour of the Petitioner applicant.

  2. As identical facts and questions of law are involved in both the case, albeit some changes in relation to the date of order and amount involved, both the cases are being decided by a common order and for the purpose of deciding the questions involved skeleton facts of CW 1616/2001, Man Structurals Ltd. are being taken into consideration: -

    The petitioner was awarded a contract for fabrication, galvanizing and supply of 220 KV D/C transmission line towers type A,B and D on tested design as supplied against TN-3253 and 132 KV D/C Transmission line tower type D on Board, design against specification No. RSEB/SE/TLPC/XEN/TL-A1/TN-3379 vide purchase order dated 06.03.1998. The purchase order in question contained various conditions and terms and after being accepted and signed by the petitioner, the same had been translated into a contract. As such the terms of the said purchase order formed a contract and in view of the provision contained therein the general terms and conditions of the contract issued by Rajasthan State Electricity Board were made mutatis mutandis applicable.

  3. In terms of the said purchase order, the petitioner supplied the required material from 09.04.1998 to 29.08.1998. After completion of the supply, the petitioner raised its bills which were duly paid.

  4. The dispute however, arose as a result of a letter/demand notice dated 06.06.2000 sent by the Superintending Engineer (TLPC) of the respondent-Nigam whereby a sum of Rs. 26,34,248.09 was demanded on account of price variation. The said amount of price variation was calculated on the basis of formula given under the price variation clause of the purchase order. For the purpose of present controversy the parameter S1 is...

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