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M/S. Supreme Industries Ltd. v. M/S. Ranisati Pipe Industries Others

Supreme Court Of India
Jul 17, 2008
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Supreme Court of India – Civil Appeal arising out of S.L.P.(C) No. 8750/2007

Factual and Procedural Background

An order was placed with the appellant for the supply of nine lakh metres of PVC pipes for the State of Jharkhand. After approximately three lakh metres had been delivered, the contract was terminated. Respondent No. 1, M/s. Ranisati Pipe Industries, challenged the termination by filing Writ Petition No. 1046/2006 in the High Court of Jharkhand at Ranchi. A learned Single Judge granted relief, which was affirmed by a Division Bench. The appellant came to the Supreme Court by Special Leave Petition. During the Supreme Court hearing, counsel for M/s. Ranisati Pipe Industries sought leave to withdraw the original writ petition, prompting the present order.

Legal Issues Presented

The opinion addresses a procedural matter and does not frame distinct legal issues.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court accepted the statement of learned counsel for M/s. Ranisati Pipe Industries withdrawing Writ Petition No. 1046/2006. Consequently, both the Single Judge’s and the Division Bench’s judgments were set aside, and the writ petition was dismissed as withdrawn. The Court ordered restoration of the status quo ante as it existed on the date the writ petition was filed.

Because the contract had been partially performed—three lakh metres out of nine lakh metres of PVC pipes had already been supplied—the Court directed:

  • The appellant must deliver the remaining six lakh metres within thirty days.
  • The State of Jharkhand must accept this balance quantity.

The Court rejected a contrary letter from the Secretary, Water Resources Department, noting that throughout the litigation the State had supported the tender process, the rate quoted by the appellant, and had filed affidavits to that effect. With the original writ petition withdrawn, the Court found no basis for the State’s new position.

A related Special Leave Petition filed by M/s. Farmers Tractors, an intervenor below, was dismissed as infructuous because the main writ petition had been withdrawn.

Holding and Implications

Civil Appeal DISPOSED OF; original Writ Petition No. 1046/2006 dismissed as withdrawn; judgments of the High Court set aside; status quo ante restored.

Immediate consequences include completion of the contractual supply within thirty days and mandatory acceptance by the State. No costs were awarded. The decision turns solely on withdrawal of the writ petition and does not establish new legal precedent beyond the parties to the contract.

Show all summary ...

Leave granted.

Having heard learned counsel on both sides and having examined in detail each of the documents relevant to the case, Mr.Jha, learned counsel appearing for respondent No.1-M/s. Ranisati Pipe Industries (original writ petitioner in the High Court) states, on instructions, that he would like to withdraw the original Writ Petition No.1046/2006 filed in the High Court of Jharkhand at Ranchi.

In view of the above statement made by the learned counsel, the impugned judgment of the Division Bench as well as the judgment of the learned Single Judge stands set aside as the original Writ Petition stands dismissed as withdrawn.

Accordingly, with the dismissal of the original Writ Petition No.1046/2006, the status quo ante as prevalent on ...2/-

the date of filing of the said Writ Petition shall stand restored.

At this stage, we are required to state that since we are directing restoration of status quo ante, it needs to be mentioned that a concluded contract awarded in favour of the appellant stood terminated after they had supplied approximately three lakh metres of PVC Pipes out of the total quantity of nine lakh metres. The Court's intervention took place at the stage of execution of the contract. Since we are restoring status quo ante, we are directing the appellant herein to supply the the balance quantity under the contract within thirty days from today. Secondly, we are also directing the State to accept the balance quantity accordingly. This Order is being passed because the Appellant had supplied 300000 (approx.) out of 900000 Metres of PVC Pipes.

At this stage, Shri B.B.Singh, learned counsel appearing for State of Jharkhand, states that he has received instructions from the Secretary, Water Resources Department, that the State supports the impugned judgment of the Division Bench of the High Court, vide letter dated 21st April, 2008. Further, Mr. Singh points out that he has no instructions with regard to the balance quantity which is ...3/-

required to be supplied under the contract. We find no reason to accept the statement of the Secretary for two reasons. All throughout the litigation the State has filed affidavits supporting the decision inviting tender as well as the terms and conditions of N.I.T. Even with regard to the rate at which the offer is made by the appellant, the State has supported the rate submitted by the appellant. Even before us in the S.L.P., affidavits have been filed to that effect. Secondly, in this case, original Writ Petition was filed by respondent No.1 who, as stated hereinabove, has sought our permission to withdraw the Writ Petition. In the circumstances, there is no question of the State now submitting vide some letter that they are supporting the impugned judgment.

Civil Appeal is, accordingly, disposed of with no order as to costs.

...................J.

(S.H. KAPADIA) ...................J.

(B. SUDERSHAN REDDY) New Delhi, July 17, 2008.

In view of our order passed today in the case of M/s. Supreme Industries Ltd. Vs. M/s. Ranisati Pipe Industries & Ors., Civil Appeal arising out of S.L.P.(C) No.8750/2007, nothing survives in this Petition filed by M/s. Farmers Tractors. The reason is that petitioners-M/s. Farmers Tractors were intervenors in the High Court. They had opposed the original Writ Petition filed by respondent No.5 herein- M/s.Ranisati Pipe Industries. Since the original Writ Petition sands dismissed as withdrawn, nothing survives in this Special Leave Petition and the same is, accordingly, dismissed as infructuous.

No orders as to costs.

...................J.

(S.H. KAPADIA) ...................J.

(B. SUDERSHAN REDDY) New Delhi, July 17, 2008.