PARTABMULL RAMESHWAR v. K. C. SETHIA (1944), LTD.

[1951] 2 Lloyd's Rep. 89

HOUSE OF LORDS.

Before Lord Porter, Lord Normand, Lord Oaksey, Lord Radcliffe and Lord Asquith of Bishopstone.

Contract-Implied term-Non-delivery- Restriction on exports imposed by government - Insufficiency of quota allocation - Alleged implied term in contract excusing consequent non-performance - "Clean contract" - London Jute Association conditions- C.i.f. contracts entered into between appellant sellers and respondent buyers in July and September, 1947, for sale of 3500 bales of jute to be shipped from Calcutta and/or Chittagong to Genoa -Export of jute from Calcutta or Chittagong only permitted under government quota system - Quantity and destinations of each exporter's quota based on trade of one particular year chosen by exporter-No jute shipped to Italy by sellers in year chosen by them - Division of India in August, 1947 - Exports still restricted from Calcutta (India) on quota system already existing - Exports not restricted from Chittagong (Pakistan) until about February, 1948 - No application by sellers to ship jute from Calcutta to Italy until February, 1948 - 150 tons (about 850 bales), part of quota for Italy subsequently received, shipped to buyers from Calcutta-Application by sellers in September, 1948, to ship jute to Italy from Chittagong-Shipping dates extended by buyers at sellers' request until end of September, 1948 (one month's additional time also being allowed by contract terms) - Failure by sellers to ship contract quantity in time-Claim by buyers for damages - Contention by sellers that term should be implied in contracts that they were to be excused from performance if sufficient quota not obtained - Arbitration - Award in favour of sellers reversed by Appeal Committee of London Jute Association -Case stated - Award of Appeal Committee upheld by Lord Goddard, C.J., and C.A.-Appeal by sellers.