Krishnaswami Nayudu, J.-

This appeal arises out of a suit for damages for breach: of contract. The plaintiffs, who are the appellants are merchants carrying on business at Coimbatore, the defendants being merchants of Salem and manufacturers of tapioca starch. The plaintiffs’ case is that in January and February, 1946, the defendants entered into three contracts for the supply of 35 tons, 50 tons and 100 tons, of tapioca starch to the plaintiffs at Rs.15-8-0 per cwt. F.O.R. Sankaridrug, Sankaridrug being in Salem District, and as against the said three contracts the defendants received from the plaintiffs a sum of Rs.10,000 on 21st February, 1946. The sale and purchase of tapioca were subject to the Starch Control Order of 1945 and licence was necessary for selling the commodity. Since under the contract the goods were to be despatched outside the district to Ahmedabad, Indore, Bombay and other places in addition to a licence under the Starch Control Order an export permit from the Collector of the District was necessary under the Madras Tapioca (Movement Control) Order. The plaintiffs state that the necessary export permits from the authorities were applied for by the defendants on

Click Here to Read the rest of this document