Case Note & Summary
The plaintiff, The Cotton Corporation of India Ltd, a government undertaking and canalising agency for import of cotton, filed a suit for recovery of Rs.14,09,947.67/- with interest at 20% p.a. from the defendant, Rajasthan Spinning and Weaving Mills Ltd and others. The plaintiff imported cotton on behalf of the Union of India and supplied it to textile mills registered with it under the import policy. The defendant mill was allotted quota and supplied cotton but failed to pay the price. The court examined the evidence including invoices, delivery challans, and correspondence. The defendant did not seriously contest the claim. The court held that the plaintiff had proved the supply and non-payment. However, the court reduced the interest rate from the claimed 20% p.a. to 6% p.a. from the date of suit till payment, as the contract did not specify any agreed rate of interest. The suit was decreed in favour of the plaintiff for the principal amount with interest at 6% p.a. from the date of suit till realisation.
Headnote
A) Contract Law - Sale of Goods - Recovery of Price - Plaintiff, a canalising agency, supplied imported cotton to defendant mill on actual user condition - Defendant failed to pay the price - Court held that the plaintiff is entitled to recover the principal amount with interest at 6% p.a. from the date of suit till payment - Held that the plaintiff proved the supply and non-payment (Paras 1-10).
Issue of Consideration
Whether the plaintiff is entitled to recover the sum of Rs.14,09,947.67/- with interest from the defendants for the price of imported cotton supplied.
Final Decision
Suit decreed in favour of the plaintiff for the principal amount of Rs.14,09,947.67/- with interest at 6% p.a. from the date of suit till payment and/or realisation.
Law Points
- Recovery of price of goods sold
- Interest on delayed payment
- Canalising agency
- Import policy
- Actual user condition
