TaxTMI 
TaxTMI 
TaxTMI 
2008 (1) TMI 873
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....al Government in exercise of its power under Section 3(3C) of the Act on yearly basis. 'Sugar year' commences from the month October of the year. Price of levy sugar although is required to be notified at that time, admittedly, there exists a practice to notify the previous year's price as a levy sugar on an adhoc basis price in October and final price therefor is notified later on. 2. Pursuant to or in furtherance of a notification issued by the Central Government under the Act and the directions issued by the competent authority from time to time, levy sugar was supplied by the respondents to the agencies of Central Government as also the appellant. 3. Respondents herein received allotment letters for supply of sugar both to....
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....he respondents were relegated to the remedy of a civil suit for recovery of respect of the amount claimed by them. 6. A review petition was filed by the respondents pointing out that no direction has been made in regard to payment of interest and by a judgment and order dated 29th April, 2005 interest was directed to be paid. 7. Appeals preferred thereagainst by the appellant herein have been dismissed by a Division Bench of the High Court by reason of the impugned judgment. 8. Mr. Amarendra Sharan, learned Additional Solicitor General of India appearing on behalf of the appellant submitted : 1. Transactions between the parties being contractual in nature, no writ petition was maintainable. 2. Respondents, having alleged breach of cont....
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.... as in respect of supply of sugar in earlier years, certain claims had been made by it, payment was rightly withheld, stating: "Since the shortages mentioned in the preceding paras were detailed in the seal intact wagons, therefore, the petitioners were fully respondible/liable for compensating the losses caused to the Respondents on this account. However, there happened some delay in working out compiling the accurate shortages at our level and as such factual position could not be intimated to the petitioners in time. The shortages relates for the period from 1983 to 1995 i.e. 12 years." 9. We have noticed that the mode in which supplies were to be made have been laid down in the circular letters issued by the Central Government. The re....
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....rms of binding contract. 13. We have noticed hereinbefore that the High Court had divided the cases in two categories. In regard to the supplies made by the respondents to the Central Government and/or its agencies wherewith appellants had no concern, it could not have denied payment on the pretext of shortage or quality of the sugar supplied, particularly, when the recipient did not raise such a question. 14. The Central Government, issued a letter dated 17th November, 1972 on which reliance has been placed by the appellant itself before the High Court; clause (vii) whereof reads as under : "On receipt of dispatch instructions, the District Manager at dispatching and will arrange full payment including excise duty to the mills for road ....
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....porated by the mills in the bills and will be paid by FCI. Wagons will be booked against clear RRs in the name of receiving District Managers and would be sent to the letter promptly. Stocks by rail shall move against clear RRs and it shall therefore be the responsibility of the receiving District Managers to account for the weight of sugar properly. In case of any shortage/damages of sugar in transit, the claims for the same should be lodged promptly with the railways, in accordance with the standing instructions on the subject." 15. Jurisdiction of the High Court to entertain a writ application involving contractual matter was considered by a Bench of this Court in ABL International Ltd. & Anr. v. Export Credit Guarantee Corporation of ....
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....ch the writ petitioner would be entitled to in law as well as in equity. We do not, thus, find any substance in the contention of Mr. Sharan that while exercising its review jurisdiction, no interest on the principal sum could have been directed to be granted by the High Court. A writ court exercises its power of Review under Article 226 of the Constitution of India itself. While exercising the said jurisdiction, it not only acts as a court of law but also as a court of equity. A clear error or omission on the part of the court to consider a justifiable claim on its part would be subject to review; amongst others on the principle of actus curiae neminem gravabit (An act of the courts shall prejudice none). We appreciate the manner in which ....