KOTESWAR VITTAL KAMATH Vs. K RANGAPPA BALIGA AND CO

JUDGEMENT

(1.) The defendant in O. S.12 of 1958 on the file of the Subordinate Judge, Cochin is the appellant. The suit was for recovery of damages for breach of contract in respect of goods purchased and not taken

(2.) The plaintiff's firm is doing business in Mattancherry in coconut oil both as merchants and commission agents. The defendant is a trader at Coondapoor, South Canara District. He is doing business in coconut oil through commission agents in Mattancherry. The terms of the agreement on the strength of which the plaintiff was transacting business with his customers like the defendant are set out in the plaint. The plaintiff alleged that all oil transactions entered into by commission agents at Mattancherry are governed by the trade usage known as Pakka Aadat system and the defendant was dealing with them under this system with the full knowledge of its incidents.

(3.) In the course of such dealings the defendant placed three orders, one for the purchase of 100 candies of coconut oil for one month's vaida (period) if the market rate was below Rs. 460/-; the second for the purchase of another 100 candies if the market rate was below Rs. 450/- and a third order was for the purchase of another 100 candies if the market rate was below Rs. 435/-. The plaintiff firm duly complied with the said orders and intimated the defendant by telegram and confirmed by letters that 100 candies of coconut oil has been purchased on 14-2-1952 at Rs. 455/- per candi; another 100 candies on 16 2 1952 at Rs. 447-8-0 and the last 100 candies at Rs. 432-8-0 which were the ruling market rates on the said dates. The period fixed were one month and due dates for the performance of the said contracts were 15th, 17th and 19th of March 1952 respectively. On the due dates the defendant did not take delivery. The closing market rates on the due dates were Rs. 330/-, Rs. 335/- and Rs. 352-8-0 respectively. The plaintiff has, therefore, claimed the difference in the two prices by way of damages. The usual commission and brokerage were also claimed.