The Trial Court held in that case that the Union failed to prove that any loss was suffered by it in companysequence of the default by Maula Bux to supply potatoes, poultry, eggs and fish as stipulated by him.
The Court held that the Government of India was justified in rescinding the companytracts, but they companyld number for left the amounts of deposit, for they had number suffered any loss in companysequence of the default companymitted by the plaintiff.
Appeal by special leave from the judgment and order dated December 20, 1963 of the Allahabad High Court, Lucknow Bench in First Civil Appeal No.
The Trial Court decreed the suit.
In that suit the Union claimed that it had set off the amount due to the plaintiff, amounts which the plaintiff was liable to pay as companypensation to the Union for loss suffered because of the plaintiffs failure to carry out the terms of the companytracts C/74 and C/120.
The plaintiff companymenced an action against the Union of India in the Court of the Civil Judge, Lucknow, for a decree for Rs.
8,500/ for due performance of the companytract.
53,000 odd being the price of goods supplied under the terms of another companytract with the Government of India.
He entered into another companytract with Government of India on March 4, 1947 No.
The plaintiff has appealed to this Court with special leave.
416.25 only with interest at the rate of 3 per cent from the date of the suit.
per annum.
28 of 1954.
Against the judgment of that Court Appeal No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Jagdish Swarup, Solicitor General, Yogeshwar Prasad, M. Kohli and G.R. Chopra, for the appellant.
Evidence on that question has already been led and findings have been recorded.
The High Court of Allahabad in appeal modified the decree, and awarded Rs.
20,000/ being the amounts deposited with the Government of India for due performance of the companytracts and interest thereon at the rate of 6 per cent.
But with the suit out of which this appeal arises was tried another suit filed by the plaintiff Maula Bux against the Union for a decree for Rs.
C/74 with the Government of India on February 20, 1947, to supply potatoes at the Military Headquarters, U.P. Area, and deposited an amount of Rs.
C.J. Maula Bux hereinafter called the plaintiff entered into a companytract No.
M. Singhvi and S.P. Nayar, for the respondent.
851 of 1966.
10,000 as security for due performance of the companytract.
The Judgment of the Court was delivered by Shah, Ag.
C/120 to supply at the same place poultry, eggs and fish for one year and deposited an amount of Rs.
