Bangalore District Court By Applying The Price Adjustment ... vs Has Chosen Not To Make Payment On The ... on 20 April, 2021 1 Com.O.S.No.10170/2015 IN THE COURT OF LXXXII ADDL.CITY CIVIL & SESSIONS JUDGE, AT BENGALURU (CCH.83) THIS THE 20th DAY OF APRIL 2021. PRESENT: SRI.DEVARAJA BHAT.M., B.COM, LL.B., LXXXII ADDL.CITY CIVIL & SESSIONS JUDGE, BENGALURU. Com. O.S. No.10170/2015 BETWEEN: M/s ACC Limited, Sales Unit Office, The Estate, 003A, Ground Floor, 121, Dickenson Road, Bengaluru 560 042, represented by its Senior General Manager Sales (Sales Unit) Sri. Satish M. Chandran. : PLAINTIFF (Represented by M/s Kumar & Kumar Advocates Advocates) AND Karnataka Rural Infrastructure Development Ltd., Grameenabhivruddi Bhavana, 4th & 5th Floor, Anandrao Circle, Bengaluru 2 Com.O.S.No.10170/2015 560 009, represented by its Managing Director. : DEFENDANT (Defendant is Represented by Sri. Gururaj Joshi Advocate) Date of Institution of the 14.12.2015 suit Nature of the suit (suit on pronote, suit for declaration & Possession, Suit for injunction Recovery of Money etc.) Date of commencement of 12.09.2019 recording of evidence Date of First Case Not held (transferred suit) Management Hearing Time taken for disposal from 15 days the date of conclusion of arguments Date on which Judgment was 20.04.2021 pronounced Total Duration Year/s Month/s Day/s 05 04 06 (DEVARAJA BHAT.M), LXXXII Addl. City Civil & Sessions Judge, Bengaluru. 3 Com.O.S.No.10170/2015 JUDGMENT This is a suit for recovery of Rs.1,61,38,710/ from the Defendant with interest at the rate of 18% per annum from the date of suit till the date of realisation. 2. The contentions of the Plaintiff, in brief, are as follows: The Plaintiff is a Company incorporated under the provisions of the Companies Act, 1956 and is engaged in the business of manufacturing cement and Ready Mix Concrete, that the Defendant is a Government of Karnataka undertaking for developing the rural infrastructure in Karnataka State, that the Defendant issued a Tender Notification for the year 2006 for supply of cement to the projects of the Defendant, that the Plaintiff was the successful bidder and the Defendant accepted the bid of the Plaintiff since 2006 to 2011, that there was no issues with regard to the price and payment of invoice amount to the Plaintiff, that the Defendant issued a fresh tender on 27.05.2011 for the period from May 2011 to May 2012 and the Defendant issued a Letter of Acceptance to the Plaintiff for supply of 2,60,000 bags of PPC Cement amounting to Rs.13,22,96,000/, that there was no tender between June 2012 to December 2012, that at the request of the Defendant, the Plaintiff supplied cement on the basis of the 4 Com.O.S.No.10170/2015 earlier Tender and the same has been accepted by the Defendant, that on 27.12.2012, the Defendant issued Tender Notification for the period from January 2013 to June 2013 and the Plaintiff participated in the said bid and was successful bidder and accordingly the Defendant issued a Letter of Acceptance dated 27.12.2012 for supply of OPC (Ordinary Portland Cement) 933 bags and PPC (Pozzolona Portland Cement) 33,567 bags totally amounting to Rs.93,49,999/, that there was no tender between January 2013 to October 2013, that the Defendant issued a fresh Tender Notification on 15.10.2013 for the period from November 2013 to April 2014, that upon considering the quality of cement and efficiency in supplying the cement within the time fixed, the Defendant has continuously renewed the Plaintiff's contract every year and has issued Letter of Acceptance from 2006 to till date, that according to the Price Adjustment Clause , wherever the wholesale price index of the cement is reduced, the Defendant has deducted the amount and made reduced payment to the Plaintiff and when it was increased, the Defendant is under an obligation to pay the increased price/value to the Plaintiff, that whenever the wholesale price of the cement has decreased, the Defendant has promptly made reductions in the payments to be released to the Plaintiff by applying the Price Adjustment Formula, but t