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Issues Involved:
1. Readiness and willingness to perform the contract. 2. Limitation under the Law of Limitation. 3. Quantum of damages awarded. Issue-wise Detailed Analysis: 1. Readiness and Willingness to Perform the Contract: The appellant contended that the plaintiff was not ready and willing to perform his part of the contract, arguing that the plaintiff failed to tender cash payment along with the demand for delivery. The court found that the plaintiff had made an initial deposit of Rs. 25,000 and paid Rs. 34,205-3-0 as demanded by the defendants' Mills for 49,693 yards of goods. Despite this, the defendants' Mills failed to deliver the goods on time. The court concluded that the plaintiff was always ready and willing to pay cash against delivery, and the defendants were wilfully negligent in effecting delivery. Consequently, the plaintiff was not bound to tender the price in cash or at all, and the first contention was negatived. 2. Limitation under the Law of Limitation: The appellants argued that the suit was barred by the Law of Limitation, as it was filed more than three years after the breach date of 31st July 1951. The plaintiff had lodged a claim with the Joint Official Liquidators on 14th June 1952, which was investigated by the District Judge. The suit was filed on 6th June 1955 after obtaining permission from the District Judge. The court held that, under Section 171 of the Companies Act, the suit was considered instituted on 14th June 1952, thus within the limitation period. The time taken in the civil proceedings before the liquidators was excluded in computing the period of limitation, and the suit was not barred by the Law of Limitation. 3. Quantum of Damages Awarded: The trial court awarded Rs. 32,812-8-0 for non-delivery of 100,000 yards of goods, Rs. 6,211-10-0 for late delivery of 49,693 yards, and Rs. 10,649-4-0 for export duty. The appellants contended that the damages were excessive. The court found that the plaintiff was not entitled to recover the export duty and damages for late delivery, as he had waived his right to these claims by accepting the belated delivery. Regarding the damages for non-delivery of 100,000 yards, the court recalculated the amount by deducting the export duty expense of Rs. 17,187-8-0, resulting in a reduced award of Rs. 15,625. The decree was modified accordingly, and the parties were ordered to bear their own costs throughout. Conclusion: The court modified the trial court's decree, awarding Rs. 15,625 with future interest at 4% per annum from the date of the suit till payment. The parties were ordered to bear their own costs throughout. The judgment addressed the issues of readiness and willingness to perform the contract, limitation under the Law of Limitation, and the quantum of damages awarded, providing a comprehensive analysis of each issue.
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