to advance the loan, and for Rs.
480 of 1958.
2,50,000/ , and Rs.
2.5 lakhs and interest thereon at 41 per annum at the end of March 1951, the groundnut cakes supplied being valued at the average, price fixed by the Government during the period for purchases from other sources.
3,600/ being damages for failure to advance the loan of Rs.
That the account for the groundnut cakes supplied by mortgagor No.
No instructions for supply were however given to the Company to supply the goods agreed to be purchased by the State.
Appeal by special leave from the judgment and decree dated April 1, 1963 of the Kerala High, CourT in Appeal Suit No.
The High Court companyfirmed the decree passed by the Trial Court negativing the companytention raised on behalf of the State that the obligation to take delivery of the goods agreed to be purchased was companytingent on the Governments advancing Rs.
3,600/ being damages for failure.
H, the Assistant Director of Agriculture by Ext.
In appeal to the High Court, the liability of the State to companypensate the Company for failure to take delivery of the goods offered to be delivered alone was challenged.
The State has appealed to this Court with special leave.
M, dated January 3, 1951, replied that I write to invite your attention to my letter of even No.
Sarjoo Prasad and M. R. K. Pillai, for the appellant.
The Company instituted on March 9, 1953, an action against the State of Travancore Cochin for a decree for Rs.
dated 12 12 1950 and to inform you that I shalt be placing orders for the supply of groundnut cake as soon as I get orders from Government providing the necessary funds for paying you the advance of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1,23,000/ being damages for breach of companytract to purchase groundnut cake.
The Trial Court decreed the suit for Rs.
1,68,600/ as damages for breach of companytract to purchase 3,000 tons of groundnut cake under the indenture.
2 and 12 lakhs.
741 of 1965.
I from the mortgagee the receipt of which sum mortgagor No.
1 doth hereby admit and acknowledge mortgagor No.
V. Gupte and A. G. Pudissery, for the respondent.
In reply to the letter Ext.
I shall supply to the mortgagee 3,000 tons of groundnut cake at the rate of 600 tons per month within a period of five months companymencing with the first day of November 1950 and ending with the last day of March 1951.
The relevant terms of the indenture were In companysideration of the sum of Rupees 2.5 lakhs 2,50,000 borrowed by the mortgagor No.
The Judgment of the Court was delivered by Shah, J. On October 9, 1950, a deed styled an indenture of mortgage was executed by the Cochin Chemicals and Refineries Ltd., hereinafter called the Company and N. C. John a Director of the Company, in favour of I the State of Travancore Cochin.
I hereby companyenants with the mortgagee as follows That the mortgagor No.
The Company arranged for the supply of goods agreed to be sold under the terms of paragraph I a and wrote from time to time letters to the appropriate officers of the State asking them to give instructions about the depots where the supplies were to be made.
