STATE OF KERALA Vs. COCHIN CHEMICAL REFINERIES LIMITED

JUDGEMENT

(1.) On October 9, 1950, a deed styled an "indenture of mortgage" was executed by the Cochin Chemicals and Refineries Ltd. - hereinafter called 'the Company', and N. C. John, a Director of the Company, in favour of the State of Travancore-Cochin. The relevant terms of the indenture were :

(2.) It is common ground that the amount acknowledged in the indenture was not advanced at the date of the indenture and was never advanced thereafter. The Company arranged for the supply of goods agreed to be sold under the terms of paragraph I (a) and wrote from time to time letters to the appropriate officers of the State asking them to give instructions about the depots where the supplies were to be made. In reply to the letter Ext. H. the Assistant Director of Agriculture by Ext. M dated January 3, 1951, replied that:

(3.) Two questions arise for determination in this appeal: