Rajagopala Ayyangar, J.-This is an appeal by the defendant, the State of Madras, against the Judgment of Mack, J., in C.S.No.156 of 1947 filed by the respondents against them, and the complaint of the appellant is directed against the disallowance of a portion of the counter-claim which had been raised by them in the suit. The plaintiffs have filed a memorandum of cross-objections objecting to the decree in respect of a portion of the counter-claim in favour of the State.

The plaintiffs are a registered firm carrying on business inter alia as country-craft-carriers for a long time and they were employed in such capacity by the Government of Madras for transporting rice from the West Coast to Tuticorin during the years 1945-1946. The terms and conditions upon which the plaintiffs’ were to render this service were reduced to writing and embodied in a contract, dated 24th November, 1945, between the Governor of Madras represented by the Commissioner of Civil Supplies on the one part and the plaintiffs on the other. This sets out the conditions under which, and the remuneration payable for the transport of rice in country-crafts between Trivandrum port and Tuticorin port. A supplemental

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