Jackson, J.

1. The plaintiffs are wholesale rice merchants of Sattur, who agreed during the period of scarcity after the war of 1914-1918 to supply rice bags to Srivilliputtur Municipality, which a committee duly appointed by the Municipality was to retail to private persons. After a consignment of bags had been made in February 1920, the price fell and the Municipality disposed of them at a loss and refused to pay the plaintiffs more than what it got by the sale. The plaintiffs claim Rs. 3,000 as the value of the bags as upon the date of delivery. The District Munsif and the Subordinate Judge decreed the suit except for a reduction made on account of gunny bags. This Court dismissed the suit on second appeal. Hence this Letters Patent appeal.

2. The plaintiffs cannot sue upon contract because they have no written contract signed by two councillors as provided by Section 45 of the then Act, Act 4 of 1884. They claim however under Section 65, Contract Act, that the agreement having been discovered to be unenforceable in law on this account they are still entitled to compensation in proportion to the advantage received by the Municipality. This claim was originally met by citin