Decided on October 16,1962

STATE Respondents


P.GOVINDAN NAIR,J. - (1.) THESE two appeals,A.S.371 of 1960 by the first defendant,and A.S.157 of 1960 by defendants 2 and 5,in O.S.145 of 1952 of the District Court of Quilon,are against the decree therein in favour of the first respondent in these appeals,the State of Kerala,the plaintiff in the suit,by which the first respondent has been granted a decree for the realisation of Rs.16,932 -4 -7 from defendants 1 and 2 and from the assets of one late Mr.A.G.Pandit in the hands of defendants 3 to 5.Defendants 3 to 5 are the legal representatives of the said Pandit.
(2.) THESE two appeals arise from the same judgment and can conveniently be disposed of together. The first respondent alleged that the said Pandit and dependents 1 and 2 approached the Travancore State with a proposal for exploiting the Ceramic resources of the State.It is stated that the terms and conditions of the agree­ment were reduced to writing,a duplicate copy of which is Ext.P -3.Defendants 1 and 2 and Mr.Pandit formed themselves into a partnership firm under the name The Associated Mining Agency Ext.P -3 provided that the Government of Travancore will at their cost acquire land specified by the Associated Mining Agency,who are termed ˜agents for starting mining operations and for putting up refinery and other appurtenances and offices,quarters,etc .,and also advance to the agents a sum of Rs.1,50,000 towards prospecting expenses and to meet the capital outlay.According to the first respondent,a sum of Rs.1,57,192 -15 -8 was advanced and the agency functioned from 13th December 1913 to 22nd March 1948.By the order dated 16th February 1948,the Government ordered termination of the agency and the management of the institution was taken over by the Ceramic experts of the Government on 22nd March 1948 on behalf of the Government.
(3.) IT is alleged in paragraph 6 of the plaint: The agents however failed to put up a refinery having the stipulated capacity and the working of the concern by the agents far from being reasonably remunerative,resulted in great loss. And in sub -paragraphs(a)to(m)of paragraph 11 of the plaint various amounts have been claimed totalling a sum of Rs.1,41,441 -15 -7,as damages,for alleged losses caused to Government by the agents by their nonfeasance and acts of malfeasance and misfeasance and also arising from the liability of the agents to account to the principal.;

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