NARSINGGIRJI MANUFACTURING COMPANY Vs. BUDANSAHEB ABDULSAHEB KAJI

JUDGEMENT

(1.) The plaintiff Company, hereafter called the plaintiff, sued to recover Rs. 83,818-9-9 by way of damages for breach of contract. There were various contracts entered into between the plaintiff and the defendant from July 3, 1918, to September 1, 1918, for the purchase of saris, yarn, and dhotis. The delivery was to be taken on or about December 31, 1918.

(2.) The plaintiff alleged that the defendant did not take delivery of all the goods within the stipulated period. He took delivery of only forty bales as described in para 2 of the plaint at the rates of Rs. 16-14-0 per piece. The plaintiff then informed the defendant by a notice of December 31, 1918, that he should take delivery of the goods after paying their price, and it was stated therein that the goods would be sold by public auction if delivery was not taken. After the notice, the defendant requested the plaintiff to extend the time up to the end of March, and the plaintiff agreed to do so on deposit of Rs. 7,500 in case any damages were sustained. Accordingly the plaintiff alleged that the time was extended up to March 31, and thereafter the defendant took delivery of certain goods but refused to take delivery of the remainder in spite of the notice sent on March 22. The goods were sold by the plaintiff on April 3, and the plaintiff claimed that the Company was entitled to recover from the defendant the difference between the sale price and the contract price after giving credit to the defendant for Rs. 7,500.

(3.) The defendant admitted the agreement sued upon but contended that he could not take delivery of the goods as they were not in stock, and that the deposit of Rs. 7,500 was made for the purpose of deriving interest and had no connection with the transactions in suit.