UNION OF INDIA Vs. TARACHAND

JUDGEMENT

(1.) The Union of India, representing the Central Railway, has filed this appeal, against the judgment of the Addl. District Judge, East Nimar, Khandwa at Burhenpur, dated 29th September 1970, decreeing the plaintiff's claim for damages for conversion of goods to the extent of Rs. 16,016.

(2.) The facts briefly stated are these. On 22-5-1968, the plaintiff's tender for purchase of coal-ash accumulated at the Nandgwm. pump-house for a period of one year from the date of the execution of the contract for a sum of Rs. 2,135 by running contract on a lump sum basis was accepted. The estimated quantity of coal-ash was 3,500 c. ft., and the rate settled was Rs. 61 per brass, i.e., 100 c. ft. The plaintiff, accordingly, on 22-5-1968 deposited an amount of Rs. 2,135 being the price of coal-ash for a year in full, i.e., the period of contract, and also Rs. 213 as security deposit. Thereafter, the parties executed a formal contract dated 15-6-1968, Ex. D-1, for sale of coal-ash by running contract. The defendant-Railway administration, however, by its letter dated 20-6-1968, Ex. D-2, cancelled the contract.

(3.) The plaintiff's claim is that the unilateral cancellation of the contract by the defendants -WAS not binding on him and their wrongful refusal to sell the goods contracted for amounts to a breach of the contract, which entitles him to recover damages amounting to Rs. 18,615 being the price of 250 brass of coal- ash at the rate of Rs. 51 per brass, after deducting Rs. 10 per brass towards expenses for collection. The plaintiff pleaded that the average deposit of coal- ash at the Nand-gaon. pump-house was one brass i.e. 100 c. ft. per day, and the market value of the same was Rs. 61 per brass and, therefore, the plaintiff was deprived of 365 brass of coal-ash during the contract period. It was further pleaded that under the terms of the contract, the plaintiff was entitled to remove and collect all the coal-ash that accumulated during the period from 156- 1968 to 14-6-1969, i.e., for A period of one year from the date of execution of the contract.