The judgment of the Court was delivered by

SUJATA V. MANOHAR, J. - The applicants, M/s. Batliboi & Company Pvt. Ltd., had entered into a contract with M/s. Kirloskar Brothers Ltd. to sell to them a double column vertical turning and boring mill, Model SK-40A complete with standard equipment and electrical equipment, manufactured in Czechoslovakia. The applicants have an import licence for import of machinery. Prior to their contract with M/s. Kirloskar Brothers Ltd., the applicants had placed an order with the Czech manufacturers of the machine for the import of the machine in question. The applicants had also filled in a tender with the defence department under which, inter alia, they were required to supply this machine to the defence department. Thereafter by their letter dated 1st April, 1972, the applicants made an offer to M/s. Kirloskar Brothers Ltd. (hereinafter referred to as "Kirloskars") offering to sell to them the same machine. In the letter of 1st April, 1972, addressed by the applicants to Kirloskars the applicants set out a telex which was sent by them to Kirloskars. In the telex they had mentioned that the machine was under offer to the defence department