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Issues Involved
1. Extension of time for the performance of the contract. 2. Plea of limitation. 3. Vagueness and uncertainty of the agreement to extend time. Detailed Analysis Extension of Time for the Performance of the Contract The plaintiffs (appellants) placed orders for cotton goods with the defendant (respondent), which were accepted with specified delivery periods. Due to a strike caused by the Quit-India movement, the respondent requested an extension of the delivery period via a letter dated August 15, 1942. The plaintiffs claimed to have accepted this extension orally. The trial court found in favor of the plaintiffs, but the High Court rejected this finding, questioning the reliability of the oral evidence and the conduct of the plaintiffs. The Supreme Court reviewed the evidence and concluded that the oral testimony of the plaintiffs was credible and consistent with the conduct of the parties. The court noted that the plaintiffs did not demand delivery on the original due dates, indicating an acceptance of the extension. Plea of Limitation The respondent argued that the suit was barred by limitation, asserting there was no agreement to extend the delivery time. The trial court disagreed, ruling in favor of the plaintiffs. However, the High Court overturned this decision, stating that the plaintiffs failed to prove the acceptance of the extension. The Supreme Court, after evaluating the evidence, agreed with the trial court's finding that the plaintiffs had accepted the extension, thus the suit was not barred by limitation. Vagueness and Uncertainty of the Agreement to Extend Time The High Court held that the extension agreement was void due to vagueness and uncertainty, particularly regarding the phrase "till the normal state of affairs recurs" in the respondent's letter. The Supreme Court examined this issue in depth. The letter indicated that the extension was for the period the mills were closed and until normalcy returned. The court found the second condition too vague, as it was unclear what constituted the "normal state of affairs." The court cited precedents such as *Nicolene Ld. v. Simmonds* and *Scammel (G.) And Nephew Ld. v. (Ouston) (H.C. And J.G.)*, emphasizing that an agreement must have definite terms to be enforceable. The Supreme Court concluded that the second condition introduced significant uncertainty, rendering the extension agreement void under Section 29 of the Indian Contract Act. Conclusion The Supreme Court confirmed the High Court's finding that the extension agreement was vague and uncertain, leading to the dismissal of the plaintiffs' appeal. Despite recognizing the lack of bona fides in the respondent's conduct, the court ruled that the vague terms of the extension could not be enforced. Consequently, the appeal was dismissed, with no order as to costs throughout.
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