ANDERSON WRIGHT LIMITED Vs. MORAN AND CO

JUDGEMENT

(1.) This appeal is directed against a judgment of an appellate Bench of the Calcutta High Court, dated the 24th February 1953, reversing, on appeal, the judgment and order of a single Judge sittting on the Original Side of that Court, passed on an application under section 34 of the Arbitration Act. The material facts are not in controversy and may be shortly stated as follows:

(2.) On the 7th of July 1950 the respondent Moran and Company Limited passed two Bought Notes to the appellant company, couched in identical terms, under which the appellant purchased 12,00,000 yards of hessian cloth, 6,00,000 yards under each contract, on certain terms and conditions stated therein. The delivery was to be made every month from January, 1951 at the rate of 1,00,000 yards per month under each of these notes and payments were to be made in cash on delivery, each delivery being treated as a separate and distinct contract The Bought Notes commenced thus :

(3.) It is admitted that the goods covered by the Bought Notes were delivered to the appellant in all the months from January to June 1951 with the exception of the goods due to be delivered for the month of March 1951. The appellant required from the respondent delivery of goods in inspect of the month of March but the latter informed the appellant, by a letter dated the 27th March, 1951 that its principals disowned any liability in, this respect as there was default on the part of the appellant in not giving shipping instructions for the said goods within the time mentioned in the contracts.