Judgment - Chagla, C.J.

1. This is an appeal from a judgment of Mr. Hathi, Judge of the City Civil Court, Bombay, by which he dismissed the plaintiffs suit. The suit came to be filed under the following circumstances.

2. One Rowji Sojpal entered into a contract with defendant 1, the Municipal Corporation of Bombay, for construction of certain sewers and admittedly under the contract a sum of Rs. 14,517-10-0 was due by the Municipality to Rowji Sojpal on 31-3-1950. On 20-3-1950, Rowji Sojpal assigned the benefit under this contract to the plaintiff and the plaintiff has sued the Municipality to recover this sum of Rs. 14,517-10-0.

The Municipality does not dispute its liability under the contract. Its defence is that it made this payment to the Union of India under a notice served by the Excess Profits Tax Officer on 29-4-1950, and the payment was made on 5-5-1950. The contention of the Municipality is that this payment discharges the Municipalitys debt to Rowji Sojpal and therefore the plaintiff is not entitled to sue on the assignment.

The trial Judge upheld the contention of the Municipality and dismissed the suit. A third party notice was also taken out against the Union of India c

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