TOLARAM CHAMPALAL Vs. JEWANRAM GANGARAM

JUDGEMENT

(1.) This is an application on the part of the defendants for an order staying the suit under the provisions of Section 19, Arbitration Act. The claim is one for damages said to have been occasioned by the failure of the defendants to deliver 19 out of 21 cases of piecegoods, which the defendants had sold to the plaintiff under a contract in writing dated 29 December 1938. Shipment under the contract was expressed to be "June-July 1939, via Rangoon." It is common ground that the piecegoods in question were of Japanese manufacture. On 21st September 1939, the defendants wrote to the plaintiffs as follows: We have been informed by our supplier's representative that on account of the very unsettled international situation they are unable to give definite information as regards the shipment of the goods relating to the contract above-mentioned. We draw attention to Clause 6 of the contract and make it clear that we are not in any way liable for late arrival of the goods.

(2.) The plaintiffs replied on 22 September, by a letter in which they observed: The present international situation was created in the mon August, and hence we fail to understand why the goods were not shipped in August.

(3.) On 24 November 1939, the defendants informed the plaintiffs that the goods had not yet been delivered and that the manufacturers were asking for a further extension of a month which meant that shipment should be made in November 1939. The letter ends: If we do not receive confirmation of the required extension within 48 hours, we shall understand that you cancel the above goods, which please note.