JUDGMENT - J.A. PATIL, J.:---This is a suit for recovery of a sum of Rs. 15,43,633.84/- with future interest thereon. The plaintiffs' case in brief is as follows :---

2. The plaintiffs are a company registered under the Companies Act and are also a Government of India undertaking. The main business of the plaintiffs is to act as canalising agents for the import and supply of foreign cotton to Indian textile mills. The defendants are a partnership firm and they owned a textile mill at Nagammainagar in Tamil Nadu. In February 1977 the plaintiffs had issued a circular to all the textile mills including the defendants inviting offers for purchase of cotton proposed to be imported by the plaintiffs. The defendants thereafter by their letter dated 26-2-1977 requested the plaintiffs to register their demand for 500 bales of Brazilian cotton at the rate of Rs. 4,975 per candy for June/July shipment. The defendants also stated that they would be arranging for the subsidiary import licence as well as for the bank guarantees. In view of the said letter the plaintiffs sent to the defendants a contract in standard form dated 18th March, 1977 in duplicate to enable the defendants to return one co

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