TATA IRON AND STEEL COMPANY LTD. Vs. RAMANLAL KANDOI
HIGH COURT OF CALCUTTA
TATA IRON AND STEEL COMPANY LTD.
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B.C. Mitra, J. -
(1.) The Appellant instituted a suit for recovery of Rs. 98,538 -11 np. in the alternative an enquiry into damages and other relief 's. This suit was dismissed by a judgment and decree dated May 3 and 4, 1965, and this appeal is directed against this judgment and decree.
(2.) On or about April 26, 1956, the Appellant placed an order with the Respondent for supply of sal wood sleepers valued at - Rs. 4,76,707. According to the Appellant, time was of the essence of the contract, and as the Respondent failed to deliver the materials in accordance with the time schedule fixed in the contract, the time for delivery was extended until November 30, 1956. This, extension was agreed to by the parties. As the Respondent failed to deliver the materials even on the extended dates, the Appellant cancelled the order and purchased the balance of the materials in the open market at the risk of the Respondent in terms of the contract. The Appellant's claim in the suit for damages is the difference between the agreed price in the contract and the price which the Appellant paid in making the purchase in the open market.
(3.) The contract contained various terms and conditions. The terms and conditions which are material for the purpose of this appeal are as follows:
(i) Items in group 'A' of the specification to be delivered within three months from the date of receipt of the Appellant's letter WCB/ RA05136/11418E/3487 of March 2, 1956, by the Respondent, remaining materials to be supplied within twelve months from the date of the Plaintiff's said letter at the rate of 25 % by the end of every third month.
(ii) All sleepers shall be of well seasoned first class sal wood free from sapwood, cracks, heart rot, loose knots, holes, fillings etc.
(iii) If on inspection at the final destination the Appellant discovers any loss in the goods supplied or that they are received in damaged or broken condition or in the opinion of the Appellant they are not of the contract quality or specification, the Appellant shall be entitled to refuse acceptance of or reject the goods altogether and claim damages or cancel the contract and buy its requirements in the open market against the Respondent and recover the loss, if any, from the Respondent reserving always to itself the right to forfeit the deposit placed by the Respondent for the due fulfillment of the contract.;
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