Restitution for goods supplied under official directions was allowed when the Government enjoyed the benefit of delivery.

Section 17(2) of the Defence of India Act did not bar a claim for the price of goods, because the statutory protection extends only to suits for damages or compensation for acts done in good faith under the Act or the rules. The claim was for recovery of the value of steel supplied, not damages of that kind, so the suit was maintainable. Section 70 of the Indian Contract Act applied because the steel was delivered pursuant to official directions, not gratuitously, and the Government enjoyed the benefit of the delivery. Compensation was therefore recoverable from the Union of India, and the plaintiff succeeded on a restitutionary basis.

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Issues: (i) Whether the suit was barred by Section 17(2) of the Defence of India Act. (ii) Whether the plaintiff was entitled to recover the price of the steel from the Union of India under Section 70 of the Indian Contract Act.

Issue (i): Whether the suit was barred by Section 17(2) of the Defence of India Act.

Analysis: The statutory bar applies only to suits for damages or compensation for acts done in good faith under the Act or the rules or orders made thereunder. The claim in the present case was for recovery of the price of goods supplied, not for damages of the kind contemplated by the provision.

Conclusion: The suit was not barred by Section 17(2) of the Defence of India Act.

Issue (ii): Whether the plaintiff was entitled to recover the price of the steel from the Union of India under Section 70 of the Indian Contract Act.

Analysis: Section 70 applies where a person lawfully does anything for another, not intending to act gratuitously, and the other person enjoys the benefit. The steel was delivered pursuant to official directions, the bills were required to be submitted for payment to the Government authorities, and the materials were held and dealt with on behalf of the Government. The benefit was therefore not merely indirect but accrued to the Government, making compensation payable under the section.

Conclusion: The plaintiff was entitled to recover the price of the steel from the Union of India under Section 70 of the Indian Contract Act.

Final Conclusion: The plaintiff's claim succeeded on the statutory restitutionary basis, and the Union of India was held liable for the value of the steel delivered.

Ratio Decidendi: Where goods are lawfully delivered pursuant to official directions, not gratuitously, and the Government enjoys the benefit of the delivery, compensation is recoverable under Section 70 of the Indian Contract Act even if no enforceable contract in the formal sense is established.

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