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1977 Supreme(SC) 35

V.R.KRISHNA IYER, A.C.GUPTA
Mohammad Salamatullah – Appellant
Versus
Govt. of A. P. – Respondent


Judgment

KRISHNA IYER, J.- This appeal, by certificate, turns on the quantum of damages to be awarded for a breach of contract for manufacture of guns to be supplied to the Nizams Hyderabad Government, a story before the Police Action, way back in 1947.

2. The facts of the case are that the then Hyderabad Government had placed orders with the plaintiffs-appellants for manufacture of certain number of guns, the price per gun being put at Rs. 125/-. Although some of the guns were manufactured the contract could not be completed and it is now concurrently found that there was a breach of contract on the part of the State. The plaintiffs claimed as damages for breach of contract a huge sum under various heads. The trial Court awarded a decree in a sum of Rs. 5,42,704-14-6. The aggrieved State took up the matter in appeal to the High Court which granted a decree in a sum of Rs. 4,73,847-6-1. Substantially, both the courts agreed on most of the heads of claim. The only major difference was in the rate of damages for breach of contract based on estimated profits. the trial Court put this figure at Rupees 1,87,500-0-0. Although the plaintiffs had claimed a much larger sum, the State, through








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