- (1.) Piloo Dhunjishaw Sidhwa-hereinafter called 'the Plaintiffs'- carries on business in the name and style of Hind Motor Corporation at Bombay. By a letter dated February 1, 1952 the Transport Manager of the Municipal Corporation of Poona called upon the Plaintiffs to supply "motor spare parts" described therein of the total value of Rs. 2,71,808-12-3/-. The Plaintiffs by letter dated February 22, 1952 agreed to supply the goods. The Plaintiffs supplied the goods from time to time and the Corporation made payment according to the invoices. On July 3, 1953 the Plaintiffs delivered certain goods required by the Corporation and submitted an invoice for Rs. 49,743-6-2/-. The Municipal Corporation failed to pay the amount of the invoice and terminated the contract.
(2.) The Plaintiffs then instituted an action in the Court of the Civil Judge, Senior Division, Poona for a decree for Rs. 49,743 6-2/- being rhe value of "motor spare parts" supplied, and for Rs. 39,755-2-4/- being damages for breach of contract. The suit was resisted by the Corporation principally on the ground that the contract on which the Plaintiffs relied was not executed in the manner prescribed by the Bombay Provincial Municipal Corporation Act 59 of 1949 and on that ground the contract was not enforceable. The trial Court decreed the Plaintiffs's suit for Rs. 49,743-6-2/- being the invoice value of the goods supplied with interest at 4 per cent, from the date of the suit and dismissed the claim for damages.
(3.) The Municipal Corporation appealed to the High Court of Bombay against the decree of the Civil Judge, Senior Division. The Plaintiffs filed cross-objections to the decree appealed from. The High Court rejected the Plaintiffs's claim for damages for breach of contract and held that the Plaintiffs was entitled only to the "fair price" of the goods supplied to the Corporation. In the view of the High Court the fair price of the goods was the "landed cost and 40 per cent, thereon" beside freight, insurance, packing and forwarding charges from Bombay to Poona. To determine the amount due to the Plaintiffs the Court appointed a Commissioner. The Commissioner reported that an amount of Rs. 38 010.59/- was due to the Plaintiffs. The High Court disallowed Rs. 2,407 83/- and Rs. 6,058/- being items respectively of commission paid to the financier of the Plaintiffs and the customs duty for determining the landed cost. The High Court accordingly decreed in favour of the Plaintiffs Rs. 32,121.11/- np. with interest, "at the rate of 6 per cent, from one month after the furnishing of the bill by the Plaintiffs to the Corporation after the date of the notice", at the rate of 9 per cent, from the date of the notice upto the date of the suit, and at the rate of 71/2 per cent from the date of the suit till the date of realization. The Plaintiffs has appealed to this Court with certificate granted by the High Court.;