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1978 (4) TMI 237

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..... factory known as the Modern Bidi Factory and have their Head Office in Katni in the State of Madhya Pradesh. The case of the plaintiff in the plaint was a simple one. It despatched by Railway 630 bags of tobacco between the 11th and 21st January, 1952 from Nipani to Katni. The consignor in all the Railway Receipts except one was one Shri G. K. Manavi and in one. Railway Receipt of 129 bags the consignor was the plaintiff firm. The consignees were self. The Railway Receipts were endorsed to the defendants'. firm by the consignors. Shri Babalal, one of the partners of the plaintiff firm, went personally to Katni, with the Bijak No. 12 dated 12-11952 and handed over two Railway Receipts and the, Bijak for the total amount of ₹ 1,21,154.12.9 to the defendants. The other Railway Receipts were sent by the plaintiff to the defendants by Registered post. The goods were accepted by the defendants. On demands being made from them from time to time for payment of the price, the defendants paid ₹ 20,000/- by four cheques of ₹ 5,000/- each. Later they gave ten more cheques of ₹ 49,000/-, out of which, five cheques of the amount of ₹ 25,000/- were honoured but .....

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..... cedure. The High Court in the first instance disposed of the appeal by its judgment and order dated the 10th of October, 1958. It set aside the judgment of the Trial Court, remitted back the case to it to retry it after giving opportunities to the plaintiff to adduce further evidence, and left the matter of amendment of the written statement and the additional evidence to that Court. Plaintiff came up to this Court and by a consent order made on the 29th March, 1963 the order of the High Court was set aside and it was asked to dispose of the applications of the defendants for permission to amend their written statement and to adduce additional evidence and thereafter to decide the appeal on the evidence as adduced in the Trial Court. The present judgment under appeal was delivered by the High Court on the 18th of September, 1964. It declined the prayers of the defendants for amendment of their written statement and adducing additional evidence. The High Court has upheld the decree of the Trial Court but on somewhat different grounds. The High Court did not agree with the finding of the Trial Court that Rahim acted as the agent of the defendants. It held that the defendants had orig .....

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..... have brought about an entirely new plea which was never taken up either at the time of the dealings between the parties or in the original pleadings. The additional evidence sought to be adduced was in respect of the facts stated in the amendment petition. The High Court rightly rejected all those petitions and we need not mention in any detail the reasons thereof. We agree with the High Court that in view of the pleadings between the parties and the evidence adduced, the finding of the Trial Court that Rahim acted as the agent of the defendants was not sustainable. We further agree that the contemporaneous letters and telegrams exchanged between the defendants and Rahim in the months of November and December, 1951 did show that the defendants bad originally placed orders for the supply of tobacco with Rahim. But even so, the stand of the defendants that the plaintiff had supplied the goods to them on Rahim's account and not on its own was rightly rejected by the High Court. While generally agreeing with it in its approach to the real points at issue in the case, we will very briefly indicate our difference of approach in regard to a few minor matters. The learned Judge of t .....

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..... para 12 : Express and implied contracts. Contracts may be either express or implied. The difference is not one of legal effect but simply of the way in which the consent of the parties is manifested. Contracts are express when their terms are stated in words by the parties. They are often said to be implied when their terms are not so stated, as, for example, when a passenger is, permitted to board a bus; from the conduct of the parties the law implies a promise by the passenger to pay the fare, and a promise by the operator of the bus to carry him safely to his destination. There may also be an implied contract when the parties make an express contract to last for a fixed term, and continue to act as though the contract still bound them after the term has expired. In such a case the court may infer that the parties have agreedto renew the express contract for another term. Express andimplied contracts are both contracts in the true sense of the term, for they both arise from the agreement of the parties, though in one case the agreement is manifested in words and in the other case by conduct. Since, as we have seen, agreement is not a mental state but an act, an inference fr .....

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