STANDARD CHEMICALS COMPANY Vs. A C SUGARS LTD

JUDGEMENT

(1.) The defendant-Company is the appellant. The respondent-plaintiff filed a suit for recovery of Rs. 36,257-50 Ps. towards damages for breach of contract.

(2.) The plaint case is that the defendant-Company agreed to supply 70 metric tonnes of American Refined Rock Sulphur and 30 metric tonnes of double refined roll sulphur by 15-11-1964 and 15-12-1964, but supplied only 30.5 metric tonnes to rock sulphur and 29.5 metric tonnes of roll sulphur and also cancelled the contract and thus committed breach of the contract by non-supply of the remaining balance and hence the plaintiff was obliged to purchase the stock else where in the market and hence the suit for recovery of the damages.

(3.) The defence is manifold. It is enough to state in brief the defence necessary for this appeal. The non-performance is justified on the ground of frustration due to circumstances beyond the control of the parties as this product is committedly an imported one and their suppliers M/s. Dharmaji Morarji & Co., who imports the sulphurs into this country could not supply the necessary stock as there is strike in U.S.A. and also there is change in the import'policy of the Government and the Maharashtra Government directed that the supplies must be confined to their State and also there is delay in receiving the shipment. They also raised the plea that the plaintiff must prove the actual loss sustained before the claim for the damages. The other pleas raised are one of limitation and the defect in the presentation of the plaint due to proper verification.