STATE OF MADRAS Vs. M A S MEHTA

JUDGEMENT

(1.) THIS is a suit by the State of Madras against the defendant, M. A. S. Mehta, for recovery of a sum of Rs. 22,000, and odd, for sale of matches which were supplied by the plaintiffs to the defendant. Under Ex. P-l dated 31-10-1957 a contract was entered into between the plaintiff and the defendant by which the defendant was constituted the sole selling agents in Chingleput district for the sale of matches manufactured at the Government Match Works at Perambur. The prices at which the goods were supplied by the match factory to the defendant were fixed and the defendant was free to put his own price on the goods when sold by him. Thus though the defendant was described as selling agent the relationship between the plaintiff and the defendant was not that of principal and agent, and the defendant was really a purchaser of the goods from the plaintiff.

(2.) THE contract provided for payment of the price to the plaintiff by the defendant within 15 days of the delivery of the goods. The defendant was not regular in the payments but by the end of December 1957, he cleared off the arrears leaving only a sum of Rs. 706-59 which was in dispute, the defendant not admitting at that stage receipt of a consignment sent on 20-11-1957.

(3.) AT his request the contract was proposed to be renewed for another year from 17-12-1957 to 17-12-1953. But no formal contract was entered into between the plaintiff and the defendant as required by Article 299 of the Constitution which runs thus :