( 1 ) THE Dispute G. P. C. is an instrumentality of the State. Its full name is State Chemicals and Pharmaceuticals Corporation of India Ltd. It is a Government owned company. As a subsidiary of the State Trading Corporation it is trading in public sector.

( 2 ) CIVIL Procedure Code imported PVC Resins Japanese make in India in 1978. The actual users of this commodity could buy it from them. The claimants. Jay Rubberco (India) P. Ltd. , made two applications for allotment of PVC Resins. One application was made on 17th October, 1978 for allotment of 100. met. tons. The second application was made on 28th December, 1978 for 200 met. tons. Civil Procedure Code issued two allocation orders intimating the claimants that the price they would charge for the goods was Rs. 96901- per met. ton ex godown.

( 3 ) WITH two allocation orders in his hands the claimants representative went to Madras office of Civil Procedure Code to take delivery of the allotted quantity on August 7, 1979. He asked for. a release order. He paid the price of the goods by means of a demand draft of Rs. 3,52,716. 00. The Madras office did not deliver the goods. They said that the State Trading Co