1958 Supreme(Bom) 63
M.C.CHAGLA, S.T.DESAI
Dhanraj Mills Ltd – Appellant
Versus
Laxmi Cotton Traders – Respondent
JUDGMENT - (1) A very interesting question relating to the law of limitation arises on his appeal and the question becomes more interesting because it has not been decided definitely by any High Court whose decisions have been referred to at the bar and the question arises in this way. The respondents entered into a contract with the appellant-mills on the 5th of December, 1950. The contract was headed "Provisional Sale Note" and under this contract the respondents agreed to buy from the appellants certain bales of cotton goods for February-March delivery against confirmed quota to be confirmed within 30 days, U. K. Mill delivery. On the next day, the respondents paid to the appellants a sum of Rs. 3,500 and the appellants passed a receipt in respect of this amunt stating that the amount was payment against fulfilling the contract. It appears that the respondents could not obtain the necessary quota for exporting the goods to the United Kingdom for which the goods were intended, and, therefore they did not carry out the terms of the contract. On the 19th of October. 1951, they wrote to the Mills that as there was no possibility of their getting quota for export of the piece-goods t
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