This Civil Ist. Appeal has been filed by firm Mohd. Sultan and Co. through its proprietor Mohammad Sultan S/o Mohammad Jamal R/o Kothibagh Pattan against the judgment of Principal District Judge, Srinagar dated 12.10.2000 in a COS No. 119/1997.

2. The appellant firm filed a suit for damages for Rs. 15 lacs against M/s Oswal Woolen Mills Limited through its Managing Director and another in this Court on 13.08.1997. It was the case of the appellants that Mohd. Sultan S/o Mohammad Jamal R/o Kothibagh Pattan is running business in the name of M/s Mohd. Sultan and Sons dealing with carpets and teazels. He is the sole proprietor of the firm. According to him, on the motivation and assurance of the defendants he started producing teazels which the defendants required for manufacturing of woolen goods.

3. Vide OWM/279/89 dated 26.8.1989 the defendants placed an order with the plaintiff -appellant asking him to supply teazels from 2" to 4" size @ 0.47 paisa per piece and was asked to supply maximum quantity. It is stated by the plaintiff that he collected the teazels from the farmers/growers and supplied the same to the defendants. Thereafter vide order dated 28.5.1991 the defendants again placed order for the supply of teazels and in terms of order dated 29.04.1992 the plaintiff supplied the teazels to the defendants @ 70 paisa per piece. In terms of order dated 14.3.1993 the plaintiff was asked to supply 10 lac to 12 lac pieces of teazels @ 70 paise per piece and the said quantity was supplied in time. According to the plaintiff he had no option but to accept the said order because the farmers/growers had already grown the said material in their agricultural farms and the goods were ready for supply. In terms of the above said supply order dated 4.4.1994 the plaintiff had to supply teazels to the defendants till 31.12.1994 @ 60 paisa per piece upto the quantity of 10 to 15 lacs of teazels pieces. The plaintiff purchased the material (teazels) from the growers and thereafter dispatched one truck load of teazels through Super Golden Transport Corporation under G.R. No. 49430 on 13.8.1994. The said transport company loaded this material in truck No. JK02B 4255 and the plaintiff paid an amount of Rs. 6480/- to the said transport company for said purpose. It is stated by the plaintiff that the defendant refused to take the delivery of the goods which were delivered through the above said truck. The plaintiff on receiving this message contacted defendant No. 2 on telephone and requested him to take the delivery but he refused to do so and asked him to slash down the rate. The plaintiff on refusal of the defendants filed a suit for mandatory injunction at Ludhiana praying therein that the defendants be directed to take the delivery of goods but the court at Ludhiana did not pass any interim order and ultimately the said suit was withdrawn by the plaintiff. The plaintiff, therefore, filed the suit for damages before this Court against the defendants for payment of Rs. 15 lacs alongwith interest @ 18% with effect from August, 1994 till its realization.

4. During the pendency of the suit, the suit was transferred to the court of Pr. District Judge, Srinagar. The defendants before the trial court raised three preliminary objections regarding the jurisdiction, maintainability of the suit and limitation. The following issues were struck by the trial court on these objections:-

(a) Whether this court has no jurisdiction to try the sui? OPD

(b) Whether the suit is liable to be dismissed underOrder 23 Rule 4 & O-2 R-2 CPC? OPD

(c) Whether the suit is liable to be dismissed as time barred? OPD

5. The trial court after hearing the parties and considering the matter decided all the three issues against the plaintiff, as such by means of the impugned judgment the suit of the plaintiff was dismissed. The following decree was passed in the case on 12.10.2000.

"On the adjudication of issues as settled in the suit the findings on all the preliminary issues having b

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