Gem Plastic Industries vs Union Of India on 5 May, 1976
In the decision of Avadh Behari, J. in M/s. Air Foam Industries Pvt. Ltd. v. Union of India: (supra), as confirmed in appeal by the Supreme Court, the respondents therein were relying upon clause 18 of the contract for their right to recover damages by appropriating "any sum then due or which at any time thereafter may become due to the contractor under the contract" or under any other contract. There is no such right being urged on behalf of the respondents. If an amount is due to the contractor on account of other bills, the payment thereof cannot be effected by such interlocutory injunction as prayed for. The contractor can recover it only by proceedings for recovery in appropriate forum where it would be decided whether the respondents are liable to pay such amounts to the contractor or not. In the result, ad interim order of Safeer, J. in the present case, is accordingly modified and it is ordered that the respondent non-applicants will be restrained from in any manner appropriating/adjusting or recovering the amount of the alleged claim of Rs. 75,530.00 from the other pending or future bills of the applicants till adjudication of the alleged claim by Arbitrator or by other appropriate proceedings before a court or till the decision of Omp 72 of 1975, whichever is earlier. There will be no order as to costs.