Judgement

BHAGWATI J.: This appeal with certificate from the High Court of Judicature at Calcutta arises out of the suit filed on the original side of the High Court by the Appellant against the Respondent to recover a sum of Rs. 1,25,962-2-0 with interest and costs.

2. The Appellant entered into three contracts, two dated the 8th August 1949 and the third dated the 17th August 1949 with the Respondent agreeing to purchase 1,80,000 bags of B twills at the price of Rs. 134/4/0 per 100 bags, 1,80,000 bags at the rate of Rs. 135-4-0 per 100 bags and 90,000 bags at the rate of Rs. 138/- per 100 bags respectively for October, November and December 1949 deliveries in equal monthly instalments on terms and conditions contained in the relative contract forms of the Indian Jute Mills Association. In September 1949 the Respondent expressed its inability to deliver the goods under the said contracts and requested the Appellant to settle the same by selling back the goods under the said contracts to the Respondent at the price of Rs. 161-8-0 per 100 bags.

Three settlement contracts were accordingly entered into between the parties on the 28th September 1949 whereby the Appellant agreed to sell