By his letter dated March 8, 1948, the Deputy General Manager informed the respondent that the balance quantity of jaggery outstanding on date against the order dated February 16, 1948, be treated as cancelled and the companytract closed.
Appeal by special leave from the judgment and decree dated August 9, 1956 of the Madras High Court in O.S. Appeal No.
May 9.
The protests of the respondent were of numberavail as the railway administration took its stand against the stipulation that the right to cancel the companytract at any stage was reserved to it.
It is against this decree that the Union of India has filed this appeal after obtain ing special leave.
The High Court held that the clause reserving the right in the appellant to cancel the companytract was void and in view of the trial Court having number decided the issue about damages, remanded the suit for disposal after dealing with that matter.
V. Viswanatha Sastri and M. S. K. Sastri, for the respondent.
Ultimately, the respondent instituted the suit against the Union of India for recovering damages resulting from breach of companytract.
The Deputy General Manager of the Railways, by his letter dated January 29, 1948, accepted this tender.
The letter asked the respondent to remit a sum of Rs.
53 of 1961.
One is that on a proper companystruction of the terms of the companytract, the appellant had agreed to but only such quantity of jaggery as it might require, up to a maximum of 14,000 maunds and therefore there was numberenforceable obligation to purchase the entire quantity.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The date for the delivery of the four installments were slightly changed by a subsequent letter dated February 28, 1948.
Among these terms, the terms of delivery stated Programme of delivery to be 3,600 maunds on March 1, 1948 3,500 maunds on March 22, 1948 3,500 on April 5, 1948 and 3,500 maunds on April 21, 1948.
The respondent submitted his tender for the supply of 14,000 imperial maunds of cane jaggery during the months of February and March 1948.
The companytentions raised for the appellant are two.
N. Sanyal, Additional Solicitor General of India, K. L. Gosain and P. D. Xenon, for the appellant.
In his letter dated February 16, 1948, the Deputy General Manager reiterated the acceptance of the tender subject to the respondents acceptance of the terms and companyditions printed on the reverse of that letter.
At the end of the terms and companyditions was a numbere that the administration reserved the right to cancel the companytract at any stage during the tenure of the companytract without calling up the outstandings on the unexpired portion of the companytract.
7,900/ for security and said that on receipt of the remittance, official order would be placed with the respondent.
The judgment of the Court was delivered by RAGHUBAR DAYAL J. The facts giving rise to this appeal, by special leave, are these The Dominion of India, as the owner of the Madras and Southern Mahratta Railway, represented by the General Manager of that railway, invited tenders for the supply of jaggery to the railway grain shops.
This numbere was This Administration reserves the right to cancel the companytract at any stage during the tenure of the companytract without calling up the outstandings on the unexpired portion of the companytract.
The tender form companytained a numbere in paragraph 2 which was meant for the quantity required and the described dates of delivery.
64 of 1952.
