LAKURKA COAL COMPANY LTD Vs. JUMNADASS BHAGWANDASS

JUDGEMENT

(1.) This is an appeal by the Colliery Company from a judgment of Chaudhuri J., delivered on 14th April 1915 by which he gave judgment for the plaintiff for Rs. 29,224-3-3 with interest. The claim was based on a contract whereby the plaintiff agreed to purchase from the Colliery Company 6,000 tons of Rubble at Rs. 1-6 and 4,000 tons of Dust at Rs. 1-4 per ton to be delivered from November 1911 to April 1912. It is agreed that the contract quantity has not been delivered and the defendants contention was that the non-delivery was due to the failure of the supplies of Railway wagons for the conveyance of the coal, for which the defendants allege they were not responsible.

(2.) It appeared that the only method of removing the coal from the colliery was by Railway wagons from the colliery siding, that the colliery had no wagons of their own available for the delivery of coal to their customers but it was the practice for the Colliery Company, in accordance with instructions from their customers, to indent upon the Railway Company for the wagons. Such indents were made for all their buyers according to despatching instructions and not separately for each buyer. The plaintiffs, in addition to other business carried on by them, were dealers in coal and had been in that trade for some seven or eight years a the date of the contract.

(3.) On the 6th September 1911, the plaintiffs wrote to H.V. Low & Co., who are the Managing Agents in Calcutta for the Colliery Company, asking them to quote the actual selling rate for B.B. Rubble, from the Lakurka Company and stating that if the rate proved agreeable, they intended accepting the entire stock of B.B. Rubble from the Lakurka Colliery. Apparently a rate was quoted, for on the 12th September 1911 the plaintiffs again wrote a letter to Low & Cy., see letter (page 11): We are prepared to accept your rate for Lakurta B.B. Rubble at Rs. 1-6 per ton as referred to in your letter of 11th September 1911, and beg to state that if you feel agreed to enter into a contract as to supplying us all the B.B. Rubble that is lying in your stock and will be raised till March 1912 and that no other men will be given supply of B.B. Rubble from your Lakurka Colliery except ourselves and that regular supplies will be arranged against our indents for wagons, we are quite prepared to deposit amount to your satisfaction either at yours or at your office as you please. We beg to add that we shall commence taking delivery from October and with slow progress till December but the last three months from January to March 1912, ours will be plenty of orders to hand and those you are to please arrange to give prompt effect to. Also please let us know as to what will be the probable quantity including the B.B. Rubble lying in stock and that will be raised till March 1912. Please oblige us by your kindly quoting the actual rate for Dust from your Lakurka Colliery by return. A favourable reply will highly oblige. "P.S. The deposit money must be the one as current in all other offices.