Judgment

SUBBA RAO, J. : Messrs. Best and Co., Ltd., Madras the respondent herein, hereinafter called the Agency Company, is a private limited company carrying on business in innumerable lines. It is doing the business of importers exporters, agents and sub-agents of various shipping insurance, and manufacturing companies, in the course of which it acquired numerous agencies from, manufactures both in India and outside for sale in India of textiles, dairy products, engineering equipment, soaps, paints, toilet goods, etc. One of such agencies was from the Imperial Chemical Industries (Exports) Limited, Glasgow, hereinafter called the Principal for distribution and marketing in certain territories in South India of its ammunition, blasting explosives and accessories. The said agency came into existence in 1900. The terms of the agency were not reduced to writing. The rates of commission were paid on terms agreed upon from time to time. The agency was terminable at will; but because of their mutual confidence, it continued without break till the year 1947 when the Principal decided to transfer all its agencies in India and Ceylon to Imperial Chemical Industries (India) Limited. By it