MADHYA PRADESH MINES LIMITED NOW MADHYA PRADESH INDUSTRIES LIMITED Vs. RAI BAHADUR SHRIRAM DURGA PRASAD LIMITED

JUDGEMENT

(1.) These two appeals by special leave arise out of cross-suits in respect of the contract for purchase of manganese ore entered into between the appellants and the respondents on May 7,1953 under the agreement marked as Exh P-81. The appellants are the sellers and the respondents are the buyers. There has been a breach of that contract. The parties are at issue as to who was responsible for the breach. Both the trial Court as well as the High Court have come to the conclusion that the sellers were responsible for the breach of the contract. The buyers' suit was for the refund of the money advanced by them with interest. In the sellers' suit they claimed a sum of Rs. 1,13,439/ 2/- after adjqmkg the advance of Rs. 4, 41, 000/- as damages against the buyers, for wrongfully refusing to take delivery of the ore supplied under the contract. The sellers' suit has been dismissed and the buyers' suit has been substantially decreed.

(2.) On May 7, 1953, the buyers entered into a contract to buy 7500 tons of high grade of manganese ore and the sellers agreed to sell the same. The ore was to be delivered at one or the other of the four points mentioned in the contract. The price agreed to be paid was Rs. 140/- per ton of 2240 lbs. F. O. R. Sitasaongi and Duttapohar sidings and Ramtek and Goberwahi stations on the basis of 48% Metallic Manganese; Rejections below 46% Mn., Maximum 9 percent Fe., Maximum 9 percent. Sio2 and Maximum 0.10% P., and if any ore offered does not fulfil those conditions the buyers were entitled to refuse to take delivery of the same. Clauses 4 and 5 of the contract are important for our present purpose. They read as follows:

(3.) As per the terms of the contract the buyers paid a sum of the 4,41,000/- as advance, at 42% of the basic price for the purchase of 7500 tons of manganese ore. It was agreed between the parties that each time the sellers supplied ore to the buyers, 42% of the price of the ore supplied should be adjusted towards the advance and the buyers are required to pay the balance only. The remaining terms of the contract are not relevant for our present purpose.