Dina Nath Malhotra And Ors. vs Union Of India (Uoi) And Ors. on 6 January, 2003
In Mohan Meakin Breweries Limited, Mohan Nagar, Ghaziabad (U. P.) v. Union of India (supra), it was held that the demand of Rs. 2,57,337 was just a claim by the Government against the petitioner therein on the allegation that a breach of contract was committed. Petitioner-company denied its liability. It was held that the validity of such a disputed claim for money based on an alleged breach of contract, is to be canvassed either for or against, in ordinary civil suit or by resorting to arbitration, if applicable. Accordingly, the respondents were restrained from adjusting or recovering the amount of Rs. 2,57,337/- out of the security amount and other pending bills of the petitioner -company.