w w w . L a w y e r S e r v i c e s . i n



Shree Laxmi Iron & Steel Works Pvt. Ltd. v/s Research Designs & Standard Organisation (RDSO)& Others


Company & Directors' Information:- S A L STEEL LIMITED [Active] CIN = L29199GJ2003PLC043148

Company & Directors' Information:- INDIA STEEL WORKS LIMITED [Active] CIN = L29100MH1987PLC043186

Company & Directors' Information:- M M S STEEL PRIVATE LIMITED [Active] CIN = U27109TZ1996PTC006849

Company & Directors' Information:- G. O. STEEL PRIVATE LIMITED [Active] CIN = U27100PB2007PTC031033

Company & Directors' Information:- STANDARD CORPORATION INDIA LIMITED [Active] CIN = U29211PB1999PLC022397

Company & Directors' Information:- INDIA IRON AND STEEL CORPORATION LIMITED [Active] CIN = U27106DL2006PLC149653

Company & Directors' Information:- J M G STEEL PRIVATE LIMITED [Strike Off] CIN = U27105BR1992PTC004985

Company & Directors' Information:- H L STEEL PVT LTD [Active] CIN = U27107AS1992PTC003726

Company & Directors' Information:- K V M STEEL PRIVATE LIMITED [Active] CIN = U29141DL1988PTC031248

Company & Directors' Information:- J D IRON PRIVATE LIMITED [Active] CIN = U51420DL1996PTC079084

Company & Directors' Information:- K STEEL PRIVATE LIMITED [Strike Off] CIN = U27104JH1973PTC000998

Company & Directors' Information:- S P IRON PRIVATE LIMITED [Active] CIN = U27106DL2005PTC136441

Company & Directors' Information:- R. J. STEEL PRIVATE LIMITED [Active] CIN = U28112MH2009PTC193047

Company & Directors' Information:- M M STEEL PRIVATE LIMITED [Active] CIN = U27107MH2001PTC131270

Company & Directors' Information:- A M R IRON AND STEEL PRIVATE LIMITED [Active] CIN = U27100MH2003PTC140824

Company & Directors' Information:- B L STEEL PVT LTD [Active] CIN = U51909WB1981PTC034021

Company & Directors' Information:- R K G STEEL PRIVATE LIMITED [Active] CIN = U27109DL2004PTC128852

Company & Directors' Information:- V B STEEL PRIVATE LIMITED [Active] CIN = U28112MH2010PTC211691

Company & Directors' Information:- I B STEEL COMPANY PRIVATE LIMITED [Strike Off] CIN = U28910MH2010PTC211344

Company & Directors' Information:- STANDARD IRON AND STEEL COMPANY PRIVATE LIMITED [Strike Off] CIN = U27106MH2007PTC171506

Company & Directors' Information:- SHREE LAXMI IRON & STEEL WORKS PVT LTD [Active] CIN = U27109WB1946PTC013991

Company & Directors' Information:- J S C STEEL PRIVATE LIMITED [Active] CIN = U27106UP2013PTC061568

Company & Directors' Information:- S. M. STEEL PRIVATE LIMITED [Active] CIN = U51101MH2013PTC239811

Company & Directors' Information:- R K P STEEL LTD [Active] CIN = L27109WB1980PLC033206

Company & Directors' Information:- C P STEEL PRIVATE LIMITED [Active] CIN = U27100WB2008PTC127447

Company & Directors' Information:- A M DESIGNS PRIVATE LIMITED [Active] CIN = U29295GJ2002PTC040336

Company & Directors' Information:- A. K. J. STEEL PRIVATE LIMITED [Active] CIN = U28112WB2010PTC144880

Company & Directors' Information:- C D STEEL PVT LTD [Under Liquidation] CIN = U27109WB1981PTC034340

Company & Directors' Information:- P P IRON & STEEL PVT LTD [Active] CIN = U27109WB2005PTC106080

Company & Directors' Information:- G K IRON AND STEEL COMPANY LIMITED [Active] CIN = U13100KA2005PLC065824

Company & Directors' Information:- T M S STEEL PRIVATE LIMITED [Strike Off] CIN = U02710TZ1996PTC007498

Company & Directors' Information:- T M STEEL WORKS PVT LTD [Strike Off] CIN = U63022MH1964PTC012894

Company & Directors' Information:- P M R STEEL PRIVATE LIMITED [Active] CIN = U51102DL2003PTC122675

Company & Directors' Information:- C T STEEL PVT LTD [Active] CIN = U27109WB2005PTC106634

Company & Directors' Information:- P G STEEL PVT LTD [Strike Off] CIN = U24111AS1998PTC005409

Company & Directors' Information:- A AND S STEEL PRIVATE LIMITED [Active] CIN = U63090DL1987PTC027835

Company & Directors' Information:- A. G. IRON & STEEL PRIVATE LIMITED [Active] CIN = U27310WB2008PTC123843

Company & Directors' Information:- R S STEEL WORKS PRIVATE LIMITED [Strike Off] CIN = U27310UP1977PTC004395

Company & Directors' Information:- J S STEEL PRIVATE LIMITED [Active] CIN = U52190CT1978PTC001432

Company & Directors' Information:- U M STEEL PRIVATE LIMITED [Strike Off] CIN = U27209TN1986PTC013670

Company & Directors' Information:- L N STEEL PRIVATE LIMITED [Active] CIN = U27310WB2007PTC118206

Company & Directors' Information:- R. N. STEEL PRIVATE LIMITED [Active] CIN = U27100WB2007PTC116588

Company & Directors' Information:- P M STEEL PRIVATE LIMITED [Active] CIN = U27105MP1982PTC001915

Company & Directors' Information:- M R STEEL (INDIA) PRIVATE LIMITED [Active] CIN = U27100TG2013PTC088808

Company & Directors' Information:- C K STEEL PVT LTD [Active] CIN = U29150WB1975PTC030259

Company & Directors' Information:- G R IRON & STEEL PVT LTD [Active] CIN = U51909WB1991PTC053653

Company & Directors' Information:- H P IRON PRIVATE LIMITED [Active] CIN = U27100DL2009PTC191318

Company & Directors' Information:- D J ORGANISATION LIMITED [Strike Off] CIN = U51909WB1983PLC035710

Company & Directors' Information:- K STEEL & COMPANY PVT LTD [Strike Off] CIN = U51909WB1991PTC053960

Company & Directors' Information:- D A IRON AND STEEL COMPANY PVT LTD [Strike Off] CIN = U27103PB1994PTC014497

Company & Directors' Information:- N S STEEL PVT LTD [Strike Off] CIN = U27106PB1980PTC004266

Company & Directors' Information:- P S IRON AND STEEL PRIVATE LIMITED [Active] CIN = U51909PB2000PTC023340

Company & Directors' Information:- R D E-DESIGNS PRIVATE LIMITED [Strike Off] CIN = U73100PN2009PTC134378

Company & Directors' Information:- K. S. DESIGNS PRIVATE LIMITED [Active] CIN = U51494DL2007PTC165002

Company & Directors' Information:- R B DESIGNS PRIVATE LIMITED [Strike Off] CIN = U22219DL2005PTC136878

Company & Directors' Information:- LAXMI INDIA PRIVATE LIMITED [Active] CIN = U65910UP1997PTC021679

Company & Directors' Information:- M. L. IRON PRIVATE LIMITED [Active] CIN = U27101DL2011PTC220421

Company & Directors' Information:- P K IRON PVT LTD [Strike Off] CIN = U34300WB1981PTC034415

Company & Directors' Information:- R C STEEL PVT LTD [Strike Off] CIN = U28112AS1980PTC001811

Company & Directors' Information:- P D STEEL PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC038426

Company & Directors' Information:- A K STEEL PVT LTD [Strike Off] CIN = U99999DL1961PTC003566

Company & Directors' Information:- H S P STEEL PRIVATE LIMITED [Strike Off] CIN = U27100MH2013PTC242983

Company & Directors' Information:- D H STEEL PRIVATE LIMITED [Strike Off] CIN = U27109RJ2012PTC039742

Company & Directors' Information:- B S DESIGNS PRIVATE LIMITED [Strike Off] CIN = U51398MH2008PTC185197

Company & Directors' Information:- R A STEEL PRIVATE LIMITED [Active] CIN = U51909MH2014PTC253625

Company & Directors' Information:- V M IRON PRIVATE LIMITED [Strike Off] CIN = U51909PN2012PTC142963

Company & Directors' Information:- K M D IRON & STEEL PRIVATE LIMITED [Strike Off] CIN = U52300UP2013PTC055973

Company & Directors' Information:- K. P. DESIGNS PRIVATE LIMITED [Active] CIN = U18109DL2007PTC164998

Company & Directors' Information:- N. V. STEEL PRIVATE LIMITED [Strike Off] CIN = U27310DL2009PTC186541

Company & Directors' Information:- K. D. STEEL PRIVATE LIMITED [Strike Off] CIN = U28939DL2012PTC244467

Company & Directors' Information:- K. M. DESIGNS PRIVATE LIMITED [Active] CIN = U45400DL2007PTC164531

Company & Directors' Information:- P. M. DESIGNS PRIVATE LIMITED [Strike Off] CIN = U17291DL2007PTC168899

Company & Directors' Information:- D. K. DESIGNS PRIVATE LIMITED [Active] CIN = U18100DL2009PTC188462

Company & Directors' Information:- K B DESIGNS PRIVATE LIMITED [Active] CIN = U18101DL2004PTC128142

Company & Directors' Information:- T. S. DESIGNS PRIVATE LIMITED [Active] CIN = U18101DL2009PTC187108

Company & Directors' Information:- M. P. DESIGNS PRIVATE LIMITED [Under Liquidation] CIN = U74994DL2007PTC164567

Company & Directors' Information:- STEEL INDIA PRIVATE LIMITED [Strike Off] CIN = U00349KA1958PTC001309

Company & Directors' Information:- SHREE IRON & STEEL PRIVATE LIMITED [Strike Off] CIN = U27310DL1994PTC063568

Company & Directors' Information:- VERSUS IRON AND STEEL PRIVATE LIMITED [Strike Off] CIN = U27109MH1997PTC109497

Company & Directors' Information:- A-1 STANDARD PRIVATE LIMITED [Strike Off] CIN = U16000MH1998PTC114505

Company & Directors' Information:- G. A. DESIGNS PRIVATE LIMITED [Strike Off] CIN = U18204DL2007PTC167729

    A.P.O.T No. 392 of 2016 with G.A. No. 3396 of 2016 & C.S 360 of 2012

    Decided On, 18 May 2018

    At, High Court of Judicature at Calcutta

    By, THE HONOURABLE CHIEF JUSTICE MR. JYOTIRMAY BHATTACHARYA & THE HONOURABLE MR. JUSTICE SHIVAKANT PRASAD

    For the Appellant: Jayanta Mitra, Sr. Advocate, Debnath Ghosh, Avijit Dey, Advocate. For the Respondents: Jishnu Chowdhury, Chayan Gupta, A. Basu, Aparna Banerjee, Dilip Kumar Chatterjee, Dipanjan Datta, Atanu Basu, Advocates.



Judgment Text

Jyotirmay Bhattacharya, CJ.

This intra-court appeal is directed against the judgment and/or order dated 7th November, 2016 passed by learned Single Judge of this Court. By the said order, the order of arrest of supply of the Metal Liners by the plaintiff to the Railway authority which was imposed on the plaintiff by the Research, Designs and Standard Organisations (RDSO) vide letter dated July, 4th/9th , 2012 was made effective with immediate effect. The plaintiff /appellant was also directed to pay cost of the said interlocutory proceeding assessed at Rs.5 lakh to RDSO. The plaintiff was directed to deposit a sum of Rs. 1 crore by way of security as a condition for resuming supply of its product to Railways, besides other conditions imposed on the plaintiff for improving quality of its product and for keeping constant vigil upon the products to be supplied by the plaintiff to the Railways authority and the consequence for supply of inferior quality product.

Admittedly, the plaintiff supplied huge quantity of metal liners to Konkon Railway Corporation Ltd. Part of such supply was utilized by the railway authorities in the railway track within western railway jurisdiction and part of such supplies remains unutilized. The railway authorities decided not to use those unutilized metal liners in their railway track as according to them, the metal liners which were supplied to the railway authorities were defective and not in conformity with the measurement and specification as prescribed by the RDSO. Some samples of such metal liners were picked up by the vigilance cell of RDSO for testing. The first set of samples was tested by RDSO. RDSO found that those samples of metal liners were not in conformity with the norms of IRS specification for metal liners.

Referring to clause 20 of "the general guidelines for vendor development, QC-G-7.1-1 Rev.2 effective from 15th September, 2011", the plaintiff was advised to stop all further production of metal liners to drawing no.RT-3738 at its firm as precautionary measures to avoid production and supply of potentially inferior product with immediate effect.

The plaintiff was informed by the RDSO that the final decision would be taken based on outcome of results of second set of samples which was to be open and tested as per the provision of Clause 20 of the aforesaid guidelines. The plaintiff's business of manufacture and supply of metal liners was thus, stopped by said letter dated July, 4th/9th, 2012 issued by RDSO.

The plaintiff felt aggrieved. Hence the plaintiff filed the instant suit and prayed for some interim relief. Such interim relief having been denied to the plaintiff by the learned Single Judge of this Court, the plaintiff filed the instant appeal before the Appeal Court disputing the defendant's claim regarding supply of defective metal liners to the railways authorities by the plaintiff.

Since the plaintiff claims that the metal liners which were supplied to the railways authorities were in conformity with the specification of RDSO and such claim having been denied by the defendant in its affidavit, this Court felt that the dispute of such nature cannot be decided without verifying the accuracy of the products which were supplied by the plaintiff to the railway authorities by an independent expert. Accordingly an independent expert was appointed as a Special Officer of this Court with a direction upon him to conduct necessary tests and submit a report as to the accuracy of the metal liners supplied by the plaintiff to the railway authorities. The expert upon notice to the parties and with their assistance conducted necessary tests and submitted a report before this Court mentioning therein that the samples which were collected from the supplies made by the plaintiff to the railway authorities do not confirm with measurement and/ or specification approved by RDSO. The expert's report thus, confirmed that the metal liners which were supplied to the railway authorities by the plaintiff were defective as the dimension of such metal liners did not tally with the dimension of the metal liners specified by RDSO.

The plaintiff did not file any objection against the said report. The plaintiff rather has accepted the said report.

Thus, this Court has no hesitation to hold that that the disputed Metal Liners which were supplied to the plaintiff were defective as those were not in conformity with the RDSO specification.

Under such circumstances we have no hesitation to hold that the penal provision contained in 20.2.4.1 the Part I Firm of the "General Guidelines for Vendor Development, QC-G-7,1-1 Rev.2 effective from 05.09.2011" will be attracted in the instant case. For convenience of understanding as to the effect of the penal provision which is attracted in the instant case, the relevant clause of the said guidelines namely 20.2.4.1 Part I Firm is set out hereunder:

"20.2.4.1 Part I Firm: Depending upon gravity on test results, one of the following action will be taken:

a) The Firm shall be downgraded to Part-II. The production and inspection of such firms can be resorted only after satisfactory quality audit. The firm can return to Part-I list only after completion of one year period from date of delisting, provided all other conditions are fulfilled.

b) Firm shall be temporarily delisted for 6 months from date of stoppage of production and inspection or three months from the date of issue of orders, whichever is later. After completion or period of delisting firm shall be restored to Part II status only after satisfactory quality audit. The firm can return to Part-I list only after completion of one year period in part-II provided all other conditions are fulfilled.

The criteria for defining gravity of test results is available with QA Civil Directorate of RDSO."

Having regard to fact that the Metal Liners supplied to the railway authorities by the plaintiff were found defective and not in conformity with the RDSO specification, the plaintiff's firm may be temporarily delisted for six months from the date of stoppage of production and inspection of three months from the date of issue of orders whichever is later and after completion of period of delisting, the firm may be restored to Part-II status only after satisfactory quality audit. The firm may, however, return to Part-I list only after completion of one year period in Part-II provided all other conditions are fulfilled.

We have already mentioned above that the production of Metal Liners bearing marking No SLI-12 (RT- 3738) and supply thereof by the plaintiff to the railway authorities was stopped with effect from July 4/9 2012. Restrictive period of six months has long expired. The plaintiff now may be permitted to start manufacturing Metal Liner of the above specification and if on inspection of such products, it is found that the quality of the plaintiff's product has improved and the products are in conformity with the RDSO specification, the plaintiff's firm may then be restored to Part-II status and then again the plaintiff's firm can return to Part-I list only after completion of one year period in Part-II provided all other conditions are fulfilled.

Following the said restrictive clause the plaintiff's manufacturing process of such Metal Liners of the said specification was stopped with effect from July 4/9 2012 and since restrictive period of six months therefore has long expired, the plaintiff is now permitted to start manufacture of such Metal Liner to drawing No. RT-3738 as Part II supplier, with the follow up actions as mentioned above. The plaintiff is however, be permitted to supply its product of the said description to the railways authorities only after its products are certified to be in conformity with the RDSO specification by the RDSO experts/RITES as the case may be.

With this observation the injunction application is dispose

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d of by modifying the impugned order and by relaxing the condition imposed by the learned Single Judge upon the plaintiff, regarding deposit of Rs. 1 crore as a condition for resuming supply of the plaintiff's product to the Railway authorities and the other conditions related thereto. We also reduce the cost amount of Rs.5 Lakh to 3 lakh to be paid by the plaintiff to RDSO as cost of such interlocutory proceeding including that of the appeal. Before parting with, we also like to mention here that this order will not prevent the Railway authority from realising damages and other relief which they are entitled under the law from the plaintiff, in accordance with law. The appeal is thus disposed of. Urgent photostat certified copy of this judgment and order, if applied for, be furnished to the appearing parties on priority basis. I agree.
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21-10-2019 The Authorised Officer, Indian Overseas Bank, Regional Office, Five Roads, Salem presented by Assistant General Manager / Constituted Organisation Versus The Employees' Provident Fund Organisation, Sub-Regional Officer, S.J. Plaza, Swarnapuri, Salem & Others High Court of Judicature at Madras
14-10-2019 JSW Steel Ltd. Versus Mahender Kumar Khandelwal & Another National Company Law Appellate Tribunal
04-10-2019 MSP Sponge Iron Limited, Chhattisgarh & Another Versus State of Chhattisgarh & Others High Court of Chhattisgarh
25-09-2019 M/s. Kundil Sponge Iron Limited & Another Versus Board of Trustees of the Mormugao Port Trust, through its Secretary & Another In the High Court of Bombay at Goa
23-09-2019 Thirumayam Rural Electric Co-operative Society, Represented by its Special Officer, Pudukkottai Versus Thirumayam Rural Electric Co-operative Society, (Affiliated to T.N.Elec. Workers Central Organisation) Represented by its Secretary, Thirumayam & Another High Court of Judicature at Madras
05-09-2019 M/s. S.S. Steel Industry Versus M/s. Shri Guru Hargobind Steels High Court of Delhi
05-09-2019 Edit II Productions Versus Standard Chartered Bank & Others High Court of Judicature at Bombay
21-08-2019 Ramesh Kumar Vishwakarma & Others Versus Steel Authority of India Limited Through Its Managing Director, Bhilai & Others High Court of Chhattisgarh
16-08-2019 Laxmikanta Maity @ Laxmi Maity & Others Versus The State of West Bengal High Court of Judicature at Calcutta
16-08-2019 G. Thirumani Versus The Chief Executive Officer, Food Safety & Standard Authority of India, Ministry of Health & Family Welfare Department, New Delhi & Others High Court of Judicature at Madras
08-08-2019 Laxmi Bai Versus State of Chhattisgarh & Others High Court of Chhattisgarh
01-08-2019 M/S Mamta Steel India Pvt. Ltd. Peepur Amethi Throu, Director & Another Versus Commissioner of Central Excise, Civil Lines Allahabad High Court Of Judicature At Allahabad Lucknow Bench
31-07-2019 M/s. Steel Authority of India Ltd. Versus Exalt Service Pvt. Ltd. High Court of Judicature at Calcutta
29-07-2019 M/S Vishwaleela Steel Tube Industries & Others Versus State of U.P. & Others High Court of Judicature at Allahabad
25-07-2019 M/s. Hotel Asia the Dawn Versus Laxmi Chand High Court of Himachal Pradesh
19-07-2019 HDFC Standard Life Insurance Company Limited Versus Virpal Nagar National Consumer Disputes Redressal Commission NCDRC
16-07-2019 Asset Reconstruction Company India Limited, Mumbai Versus Abhishek Steel & Power Limited rep. by its Managing Director, Gopal Agarwal, Hyderabad & Others High Court of for the State of Telangana
10-07-2019 Dr. K.B. Valsan & Another Versus Awesome Designs, Interior Designers & Consultants, Cochin & Another Kerala State Consumer Disputes Redressal Commission Thiruvananthapuram
08-07-2019 Laxmi Krishna Talkatkar & Others Versus Krishna Ankush Talkatkar & Another High Court of Judicature at Bombay