- (1.) The suit was instituted by M/s. Govind Ram Sri Krishna Oil Mills against Messrs. Ratanlal Ram Mohan Lal and others for damages for breach of contract.
(2.) The plaint clearly alleges that the plaintiff was a registered firm which manufactured oil and sold its own manufactured oil. It was further stated in the plaint that the defendants had entered into a contract with the plaintiffs in December, 1951 by telephone to purchase certain quantity of groundnut oil at a specified rate, and the oil was to be delivered in February and March, 1952. The defendants, however, failed to take delivery when it was made and thereby damage is alleged to have been caused to the plaintiffs. It is then asserted that the defendants were liable to make good the damage.
(3.) The defendants filed a written statement wherein they accepted the fact of agreement, but they alleged that the contract was in regard to ready oil and the oil was to be delivered in the end of January, 1952. It was then said in the written statement that the plaintiffs had no ready oil until January, 1952 and that, therefore, there was another agreement between the parties about the end of January, 1952 to the effect that the plaintiffs would deliver oil in the first week of February, 1952. The plaintiffs would not, however, manufacture oil (tel tayyar nahin kar saka) by the first week of February, 1952 and were unable to perform their part of the contract and that, therefore, the defendants did not commit a breach of the terms of the contract. Lastly, it was alleged that there was a statutory ban on forward contracts and the contract in suit, being a forward contract, was void and unenforceable.;