SANJAY TRADING COMPANY Vs. DAL CHEMICAL N V

JUDGEMENT

(1.) This is an application for revocation of leave granted under Clause 12 of the Letters Patent. 1865. The suit was filed on April 29, 1976, inter alia, for damages for breach of contract entered into in Calcutta within the jurisdiction of this Court. The contract was for the sale of 5 M. Tons of Dalapon at the rate of Rs. 15,000/- per M. T. The plaintiff applied for delivery but the defendant No. 1 failed and neglected to deliver within the time mentioned in the contract or within a reasonable time thereafter and repudiated the said contract. The plaintiff accepted the repudiation. The plaintiff claimed damages on the basis of the difference between the contract rate and the market rate and prayed for a decree for Rs. 75,000/-. The defendant No. 1 is a foreign company and carries on business from its branch office at Hindusthan Times House, Kasturba Marg, New Delhi outside the jurisdiction of this Court. The defendant No. 2 also carries on business at the same address in New Delhi.

(2.) From the averments made in the plaint and from the correspondence on record herein it appears that the jurisdiction to try and to entertain the suit by this Court has been invoked on the basis that the contract was entered into in Calcutta within its jurisdiction. Accordingly, it is contended that leave under Clause 12 was properly granted.

(3.) In the petition the petitioner defendant No. 1 has denied that any oral agreement was entered into in Calcutta. Be that as it may, that is a question which might ultimately be decided at the trial but it is sufficient for the present to say that the necessary averments relating to jurisdiction have been made in the plaint and nothing could be shown from the correspondence as to why the Court should not have proceeded on that basis and granted leave under Clause 12 of the Letters Patent at the time of the institution of this suit.