( 1 ) THIS is a suit for recovery of Rs. 5,89,434/- towards agency commission. Plaintiff is agent of defendant no. 3, an Italian company, in India. Defendant no. 1 is a Public Sector Undertaking and is a unit of defendant no. 2. Brief resume of facts pleaded by the plaintiff in respect of its claim is like this:-

( 2 ) DEFENDANT no. 1 floated a global tender for purchase of two Hydraulic Crankshaft Grinding Machines on 24. 9. 1986. Plaintiff gave an offer dated 22. 9. 1986 for two machines. Earlier plaintiff had supplied four similar machines to defendant no. 1 vide their order dated 5. 2. 1985. Later defendant no. 1 sought some clarifications and also the amendment in terms if four machines were purchased instead of two.

( 3 ) IN original offer the plaintiff had offered that agency commission would be 15% of FOB value of order. By letter dated 7. 3. 1987, plaintiff offered discount of 5% on commission if entire order was placed on plaintiff and 100% commission was paid on receipt of shipping documents. By letter dated 10. 8. 1987, defendant no. 1 wrote to plaintiff that requirement was raised to four Grinder Machines, and the plaintiff should submit reduced price bid ac