MATI LAL SAMANTA Vs. COMMISSIONERS OF TAMLUK MUNICIPALITY

JUDGEMENT

(1.) THIS appeal at the instance of the defendant is directed against an appellate decree reversing the decree of a learned Munsif. The commissioners of the Tamluk Municipality, who are the respondents before me, instituted a suit for recovery of compensation for breach of a contract, alleged to have been entered into by and between the plaintiffs respondents and the defendant appellant. According to the plaintiffs, the defendant entered into an agreement with them, for supply of 10. 000 cft. of Khoa from Jhama bricks at the rate of Rs. 35/- per cft. and 1,50,000 pieces of picked and first class bricks, in equal proportions, at the rate of Rs. 40/-per 1000 to be delivered to the plaintiffs in Tamluk, on a specified plot of land, during the period beginning from the month of January to the month of October, 1949, according to the requirements of the plaintiffs. The plaintiffs had applied to the Government for supply of 8 wagons of coal, about 170 tons in weight, and obtained a permit for the coal from the Government. The defendant approach the then Chairman of the municipality and proposed to him that the permit of coal be handed over to him for taking delivery of coal as an agent of the municipality and in consideration therefor the defendant agreed to deliver to the municipality bricks and Khoa at the rates hereinbefore mentioned. The permit for coal was made over to the defendant and an agreement was signed on December 15, 1947. Thereafter the old municipal commissioners ceased to hold office and a new body of commissioners was elected. The agreement was placed before the commission is at a meeting held on August 13, 1948, in the presence of the defendant and was sanctioned by the commissioner and the common seal of the municipality was affixed thereon.

(2.) THE case made by the plaintiffs was that on being called upon to perform the contract by the newly elected Chairman of the municipality, the defendant, by his letter, dated February 5, 1948, replied that he would be able to deliver materials worth about Rs. 5000/- only by February 25, 1948. The defendant thereafter delivered some goods and submitted a bill therefor. He was paid Rs. 900/- on account. The defendant, however, did not deliver the remaining portion of Khoa and bricks, agreed to be supplied, with the result that roads could not be repaired. The municipality was in a hurry to repair the roads, because of the impending visit of the Governor of West Bengal to the locality. Bricks were not locally available ; therefore, the municipality had to purchase the same from elsewhere. The defendant was informed about the situation, but he took no steps. The municipality had, therefore, to engage other contractors and to get the roads repaired. In this way the municipality was put to costs to the extent of Rs. 4238/3/ -. If the defendant had supplied the bricks and Khoa, as agreed upon, the costs would have been only Rs. 2126/1/ -. On account of failure of the defendant to supply, the plaintiffs were put to loss amounting to Rs. 2112/2/ -.

(3.) ALTERNATIVELY, plaintiffs pleaded that if for any reason the contract between the plaintiffs and the defendant was found to be ineffective, the plaintiffs would be entitled to get compensation from the defendant, under section 65 of the Indian Contract Act, for the benefit the defendant received on the coal permit being made over to him. On the allegations aforesaid, the plaintiffs laid their claim for compensation or damages at the round figure of Rs. 2000/ -.