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1974 (9) TMI 122

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..... maund. This tender was accepted and a regular agreement was drawn up between the parties on May 17, 1961. One of the conditions in the agreement was that if milk become a controlled article during the period of the agreement, the contractor shall be paid at the controlled rate for the supply of the articles made by him. This is practically the same as paragraph 12 of the Tender Notice. In pursuance to the agreement, the appellant supplied milk to the hospital during the period of the agreement. The price of milk was controlled by virtue of a notification issued on May 2, 1961 and this control remained in force till the end of the contract period namely, March 31, 1962. The case of the appellant was that although he agreed to supply milk at .....

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..... han that fixed by the notification and so, the appellant could have purchased milk in the market at a lower price and supplied it to the Hospital in accordance with the terms of the agreement, namely, at ₹ 15.90 per maund. 7. The notification in question runs as follows : In exercise of the powers vested in under Section 3 of Hoarding and Profiteering Prevention Ordinance 2000, as amended to date, I, S.A.S. Qaidri, Director, Food and Supplies, Kashmir Province, designated Controller General under Section 2(c) of the said Act vide notification dated 3-7-1959 issued under Home Secretariat No. S.7/IS/59 dated 8-7-1959 hereby fix maximum price of sale for the following essential commodities in the following localities as shown again .....

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..... Provided if any of the articles is controlled during the period of operation of this agreement the contractor shall be paid at controlled rates for the supplies of that article made by him. 10. The mere fact that a commodity could be sold in the market below the price fixed by a notification fixing the maximum price by government would not indicate that there was DO control. Control of any of the articles contemplated by the parties under the agreement was a control of the price of the articles. We do not think that the parties could have visualised any other controlled in the context of the contractor being paid at the controlled rates . 11. We think that fixation of the maximum price at which an article shall be sold is the contr .....

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