BASANTLAL BANARASILAL COTTON OIL CAKE MERCHANTS AND COMMISSION AGENTS Vs. WESTERN INDIA VEGETABLES PRODUCTS LTD

JUDGEMENT

(1.) This appeal arises out of judgment and decree rendered by Civil Judge (S. D. ) , Amalner, in Special Civil Suit No. 47/1989. By the impugned judgment, the suit for recovery of damages on account of breach of contract came to be decreed. The trial Court granted decree for Rs. 2,85,849=90 alongwith interest at the rate of Rs. 10% p. a. from the date of the suit till realisation of the amount. Being dissatisfied, the original defendants have preferred appeal.

(2.) Undisputedly there were 13 agreements between the parties between March, 1972 till April, 1973. The plaintiff is a company registered under the Companies Act, having its registered office at Bombay and manufacturing unit at Amalner. It deals in processing and manufacturing of artificial ghee (Vanaspati) , refined oil, expeller cakes, soaps, etc. The plaintiff Company regularly needed supply of oil cakes. The defendants/appellants having business transactions with the plaintiff since few years before the dispute arose. The appellants used to supply groundnut oil cakes to the plaintiff in bulk quantity as per the agreed terms. There is no dispute about the fact that the defendant had agreed to supply groundnut oil cakes under the 13 agreements covered by the above referred period. It was agreed from time to time, as per the rates settled at the time of each agreement that the demanded groundnut oil cakes would be supplied by the appellants to the respondent within a reasonable time. The goods were to be supplied by railway wagons. It was bilty cut and ready delivery contract.

(3.) The plaintiffs case is that the defendants (appellants) are pacca Adatia. The defendants agreed to supply the groundnut oil cakes at Amalner. The price of the goods was to be paid at Amalner on furnishing Hundis which were to be drawn at S. B. I. Branch, amalner. Though the defendants agreed to supply 34 wagons of the groundnut oil cakes yet, they supplied only 17 wagons each wagon containing 300 bags. Inspite of repeated demands, the defendants failed to supply the goods as agreed. The plaintiff suffered loss of business due to the short supply and on account of rise in the prices of the goods. Consequently, a demand notice was issued to the defendants and amount of Rs. 2,85,849=90 was demanded as enumerated in the notice. The defendants did not comply with the demand and denied the liability by giving a false reply to the notice. Hence, the suit for recovery of damages was laid.