SHANTILAL CHUNILAL Vs. VERSATILE TRADERS LTD

JUDGEMENT

(1.) This is an appeal from the judgment of Mr. Justice Kania dated January 25, 1945.

(2.) The matter arises out of two contracts for the sale of yarn dated respectively April 22 and 24, 1943. In the trial Court a number of points were taken, but these have dropped out or have been given up, leaving two main issues which we have to consider. The issue which comes first is with regard to the validity of the contract. On that issue the appellant in this Court succeeded in the Court below. The other issue concerns the quantum of damages for the breach of contract, and on that issue the respondents succeeded and the appellant filed this appeal. Thereupon the respondents cross-appealed on the issue of validity. The cross-appeal has been argued first in this Court, since, if it succeeds, the appeal with regard to the quantum of damages would not arise.

(3.) Mr. Tendolkar for the respondents on the cross-appeal submits that the transactions by the appellant (the vendor) were illegal and void as being in contravention of Notification No. 24)3 of the Government of Bombay dated July 31, 1942, which is as follows:- With effect from 1 September 1942 (that date was subsequently extended to the 1 of November 1942) no person in the Province of Bombay shall sell, store for sale, or carry on business in cotton yarn except under and in accordance with the conditions of a license in the form in Schedule B granted by the Yarn Commissioner for the Province of Bombay.