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1962 Supreme(MP) 59

High Court Of Madhya Pradesh
N. M. Golvalkar and S. P. Bhargava, JJ.
FIRM BACHHRAJ AMOLAKCHAND - Appellant
Versus
FIRM NANDLAL SITARAM - Respondents
First Appeal 208 Of 1959
Decided On : 04/07/1962

Advocates Appeared:
A.H.SAFI, A.P.SEN, C.P.Singh

Headnote:(1) Contract - 'station delivery' and 'bilty cut' contracts - distinction.

       (2) Words & Phrases - words 'station delivery' contract and 'bilty cut' contract - import of.

       The distinction between 'station delivery contract' and 'bilty cut contract' is that in the former the rate includes the expenses of sending the goods upto the station and the duty to get the railway receipt prepared is not on the seller; while in the latter the seller has to get the railway receipt prepared for fulfilling his obligation under the contract.

       'Bilti' is a Hindi word for a railway receipt Bilticut refers to rate agreed. The bilticut rate includes the cost of bagging or containers, weighing, transport to the railway station, loading in wagons, if this is to be done by the consignor, and other station charges till the bilti is issued. The railway freight is to be paid by the buyer who undertakes the risk of transit. The price is payable against the railway receipt at the place of the buyer. ILR 1955 Nag. 722 relied on. [Para 8

       (3) Contract Act, 1872 - S. 50 - mode of performance of contract agreed - it cannot be changed.

       Where the mode of performance of a contract is agreed between the parties, one of the parties cannot change it. To insist on taking delivery in a manner different than agreed upon, would be substituting one contract with another. [Paras 9 & 10

       (4) Contract Act, 1872 - S. 50 - time of performance of contract not fixed - should be performed within a reasonable time - what is reasonable time depends on circumstances of the case.

       In the absence of there being any agreement with regard to the time within which the contract was to be performed, the contract has to be performed within a reasonable time. What is 'reasonable time' is a question of fact depending upon the particular circumstances of each case. [Para 11

       (5) Contract Act, 1872 - S. 50 - doctrine of frustration - what is - contract when discharged by frustration.

       The doctrine of frustration comes into play when a contract becomes impossible of performance, after it is made, due to circumstances beyond the control of the parties. It is a special case of discharge of the contract. ILR 1949 Nag. 718 followed. [Para 15

       Where persons enter into a contract the performance of which is dependent on the continued availability of a specific thing and that availability comes to an end by reason of circumstances beyond the control of the parties, the contract is dissolved. [Para 19

       In each case, the following three questions arise for consideration :-

       (i) What was the foundation of the contract having regard to all the circumstances of the case?

       (ii) Whether the performance of the contract was prevented; and

       (iii) Whether the event which prevented the performance of the contract was of such a character that it could not reasonably be said to be in the contemplation of the parties.

       AIR 1960 SC 588, AIR 1952 SC 9, AIR 1957 Pat. 586, AIR 1955 Hyd. 233, 1916-2 AC 397, 1942 AC 154, AIR 1947 Bom. 293 and AIR 1954 Mad. 119, relied on. [Para 20

BHARGAVA, J.

( 1 ) THIS appeal arises out of Civil Suit No. 27-B of 1958 instituted in the Court of iiird Additional District Judge, Bilaspur, by the appellant firm against the respondent firm for the recovery of Rs. 11168-12-0 as damages for breach of contract. There is also another appeal (First Appeal No. 209 of 1959) which arises out of Civil Suit No. 26-B of 1958 instituted by the same plaintiff-appellant firm against a different defendant partnership firm Nandlal Radhakishan for the recovery of Rs. 10182-11-0 as damages for similar breach of contract. Both the suits were dismissed by the trial Court.

( 2 ) THE questions for consideration in both the appeals are identical, though the suits were based on different contracts. The evidence for both the cases was recorded in Civil Suit No. 26-B of 1958. This judgment shall therefore govern the disposal of both the appeals.

( 3 ) IN the body of this judgment we are referring to the facts of Civil Suit No. 27-B of 1958. Reference to documents will have to be construed to the corresponding documents in the other case (Civil Suit No. 26-B of 1958 ). Express reference to them for the disposal of the other appeal is not necessary.

( 4 ) MOST of the facts are no longer in dispute. Briefly stated, they are as follows: on 2-12-1957 and 16-12-1957, the defendant firms entered into contracts with the plaintiff firm for the purchase of 220 bags (550 maunds) of rice and 480 bags (1200 maunds) of rice at specified rate. The contracts were reduced to writing. The transactions were 'bilticut' under which the goods were to be sent by rail from Bilaspur to three different places in the Bihar State. The plaintiff firm indented for the requisite number of wagons for despatching the goods a day after making the above contracts, that is to say, on 3-12-1957 and 17-121957. However, before the wagons could be allotted to the plaintiff firm, the Central Government, in exercise of the powers conferred under section 3 of the Essential Commodities Act (No. X of 1955), passed an order on 20-12-1957 banning the export of rice from the State of madhya Pradesh to any other State in the Union of India for an indefinite period. After the imposition of this ban, all the Station Masters in madhya Pradesh were instructed by the South East Railway to stop booking of rice to any station outside Madhya Pradesh. The plaintiff therefore admittedly did not book the goods by rail and did not send the railway receipt to the defendant firm. However, the plaintiff firm sent a letter Ex. P. 6 on 16-1-1958 to the defendant firm asking the latter to take delivery. Along with this letter a bill for Rs. 37167-15-6 (Ex. D. 23)was also sent. The defendant firm in its reply Ex. P. 7 dated 25-1-1958 refused to take delivery and claimed damages from the plaintiff firm, charging it with breach of contract. Thereupon, the plaintiff firm sent another letter Ex. P. 8 on 3-2-1958, reiterating the facts above stated and emphasizing that the defendant firm was bound to take delivery of the goods in the plaintiff's rice mill at Bilaspur according to the printed conditions No. 2 and 3 in the written contract, and asked for compliance within 15 days failing which the goods would be sold in the market and the defendant would be liable for the loss incurred to the plaintiff. The defendant firm did not take delivery even after this letter. Ultimately, the plaintiff firm sold the rice and sent notice dated 10-3-1958 (Ex. P. 9)claiming the loss sustained by it on such sale. Account of sale (Ex. P. 10)was sent along with this letter, showing Rs. 11064-3-6 as the total amount of loss sustained by the plaintiff firm. The defendant firm repudiated its liability by its letter dated 18-3-1958 (Ex. P. 11), claiming rs. 3500/-as damages from the plaintiff for the breach of contract. Ultimately the plaintiff firm filed the present suit on 5-5-1958. ( 5 ) THE main question for consideration in the case whether in the contracts made between the parties, the















































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