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Issues Involved:
1. Transfer of rights under the contract. 2. Suit within the limitation period. 3. Entitlement to specific performance of the contract. 4. Maintainability of the suit against defendants No. 2 & 3. 5. Service of notice under Section 80 CPC. 6. Amount entitled to the plaintiff. 7. Relief. Issue-wise Detailed Analysis: Issue No. 1: Transfer of Rights Under the Contract The plaintiff claimed rights under the contract from the firm V.K. Industries and Fabricators. Ramdhan Lal, PW-4, testified that he was a partner in the firm and that all rights were given to Om Prakash Jain after his retirement. The court noted that the suit was maintainable under Section 69(3)(a) of the Partnership Act, which allows enforcement of rights to realize the property of a dissolved firm. Thus, the issue was resolved in favor of the plaintiff. Issue No. 5: Service of Notice Under Section 80 CPC The defendants admitted receipt of the notice dated 30th May 1968 and their reply dated 5th December 1968. Therefore, the issue was resolved in favor of the plaintiff. Issue No. 2: Suit Within the Limitation Period The court considered the continuous cause of action due to the retention of the balance material. Despite the defendants' arguments regarding the timeline of court orders and release applications, the court concluded that the suit was within the limitation period. Issues No. 3, 4 & 6: Entitlement to Specific Performance, Maintainability Against Defendants No. 2 & 3, and Amount Entitled The court addressed these interlinked issues together. The defendants argued that V.K. Industries and Fabricators were not certified re-rollers at the time of the bid, as required by the auction conditions. The plaintiff failed to prove that the auction conditions had been modified to allow non-certified bidders. The court found that V.K. Industries and Fabricators were not certified re-rollers and did not apply for the release of material based on the certificate dated 24th February 1967. Consequently, the court declined the decree of specific performance. The court also noted that the plaintiff did not provide evidence to support the claim for Rs. 75,000 towards compensation. Considering the defendants had to keep the material in safe custody for over 33 years, the court denied interest on the refund amount of Rs. 1,56,700. Issue No. 7: Relief The court passed a decree for Rs. 1,56,700 with proportionate costs against Union of India, defendant No. 1, allowing one month for payment. If not paid within this period, the plaintiffs would be entitled to future interest at 6% per annum on the amount until realization. Conclusion: The court resolved the issues by denying specific performance due to non-compliance with auction conditions and awarded a refund of Rs. 1,56,700 to the plaintiffs without interest, except in case of delayed payment.
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