- (1.) THIS is an appeal from the judgment of G. K. Mitter, J. who decreed the plaintiff Company's suit against the Union of India for a sum of Rs. 20,343/8/- with interest and costs. The suit was instituted by the New Marine Coal Co. (Bengal) Ltd. as plaintiff to recover the price of coal delivered and supplied to the Bengal Nagpur Railway Administration of which the defendant Union of India was pleaded and admitted to be the owner. The claim in the suit was based both on the agreement as well as on compensation under section 70 of the Indian Contract Act.
(2.) THE trial court held that there was no enforceable agreement because the contract did not satisfy the requirement of section 175 (3) of. the Government of India Act, 1935 but it held that the goods were supplied and delivered law fully by the plaintiff to the defendant, not intending to do so gratuitously and the defendant enjoyed the benefit thereof with the result that the defendant was liable to pay compensation under section 70 of the Contract Act. The learned trial Judge decreed compensation against the Union of India which is now appealing against the judgment.
(3.) THE main contention of the appellant Union of India before us is that a contract which fails for want of form under section 175 (3) of the Government of India Act 1935 or under the present Article 299 (1) of the Constitution of India cannot be indirectly enforced on the basis of compensation by application of section 70 of the Indian Control Act. Three main arguments ire advanced by the Appellant in support of such contention.;